ASIC takes aim at index fund managers over greenwashing
ASIC chair Joe Longo warned fund managers remained responsible for decisions they outsource to other managers while building their ESG funds.
Fund managers that outsource the management of their portfolios to other parties remain responsible for ensuring the investments they make are consistent with how the funds are being marketed to investors.
That was the stern warning from Australian Securities and Investments Commission chair Joe Longo to passive fund managers, and a direct reference to the regulator’s successful enforcement action against Vanguard, in which the index manager delegated investment decisions to a third party.
Speaking at the Responsible Investment Association of Australia annual conference in Sydney on Thursday, Longo said the regulator was now focusing on “sustainable representations” that fund managers make to their customers in its multi-pronged battle against greenwashing.
“We have seen instances of investments made by delegated portfolio managers or sub-managers that do not align with the responsible entities’ representations to investors.
