ASIC opens first criminal case against firm for misleading 'green' claims

ASIC alleges AMP Capital made 'greenwashing' claims about its Sustainable Future Fund

The Australian Securities and Investments Commission (ASIC) has opened its first criminal case against a firm in Australia for misleading 'green' claims about an investment fund. ASIC alleges AMP Capital breached the Corporations Act by making false or misleading statements about the AMP Capital Sustainable Future Fund to investors. The fund was marketed as being environmentally friendly, but ASIC alleges AMP Capital's representations about the fund were false or misleading because they did not accurately reflect the fund's investment strategy and holdings.

ASIC alleges greenwashing by AMP Capital

ASIC alleges AMP Capital engaged in greenwashing, which is the practice of making false or misleading statements about the environmental benefits of an investment product. ASIC alleges AMP Capital did this by making statements about the fund's investment strategy and holdings that were not accurate. For example, ASIC alleges AMP Capital stated the fund would invest in companies with strong environmental performance, but the fund actually invested in companies with poor environmental performance.

ASIC's case against AMP Capital is a significant development in the fight against greenwashing. It is the first time ASIC has brought criminal charges against a firm for misleading 'green' claims. The case sends a strong message to firms that they cannot make false or misleading statements about the environmental benefits of their investment products.

The importance of truthful investing

It is important to ensure that investors can have confidence in the information they are given about investment products. Investors need to be able to make informed decisions about where to invest their money. ASIC's case against AMP Capital is an important step in ensuring that investors can have confidence in the information they are given about investment products.

If you are considering investing in an investment product, it is important to do your research and make sure you understand the product before you invest. You should also be aware of the risks involved in investing and seek professional advice if you are not sure about anything.