“Ethical Investment Fund” Fined AU$10.5m for Investing in Gambling, Other Restricted Sectors

The Federal Court of Australia has handed Active Super an AU$10.5m (US$6.6m) penalty after it was found investing in restricted sectors like gambling despite describing itself on its website, impact reports, and product disclosure statements as an ethical superannuation investment fund.

It even named gambling companies in its excluded list of industries that present “too great a risk to the environment and community.”

sports betting operators Tabcorp and PointsBet, and casino firm SkyCity Entertainment

The Australian Securities and Investments Commission (ASIC) discovered that Active Super invested in several gambling-related companies, such as sports betting operators Tabcorp and PointsBet, and casino firm SkyCity Entertainment.

Other questionable holdings included stakes in oil companies, coal firms, and entities with links to Russia. The fund held the positions for about two and a half years, with Justice O’Callaghan remarking Active Super’s stubbornness to admit its faults by offering “a host of contrived arguments in its defense.”

Talking about the sizable penalty, ASIC Deputy Chair Sarah Court remarked that it sends a strong message to other investment companies in the space to ensure they meet their promises.

The post “Ethical Investment Fund” Fined AU$10.5m for Investing in Gambling, Other Restricted Sectors appeared first on Vegas Slots Online News.