The corporate watchdog has warned fund managers that outsource ethical screening of their investments to “do their own homework” or face greenwashing penalties, after the Federal Court fined Vanguard a record $12.9 million for failing to do so.
Australian Securities and Investment Commission deputy chairwoman Sarah Court said the fine was “a significant deterrent” for any other wrongdoers. Federal Court Justice Michael O’Bryan slammed Vanguard’s lawbreaking as “serious” and revealing of “a very substantial failure” in its legal compliance.
