Australia fines Mercer Super $7 million for misleading ESG claims on its investments
(Reuters) -Australia’s corporate regulator said on Friday that the country’s Federal Court has penalized Mercer Superannuation with a fine of A$11.3 million ($7.35 million) for wrongful claims of the pension fund’s sustainable investments.
The Australian Securities and Investments Commission (ASIC) had initiated Federal Court proceedings against the superannuation giant in early 2023, accusing them of misleading the public with wrongful claims.
Contraventions admitted by Mercer are serious. They arose from failures by Mercer to implement adequate systems to ensure that ESG claims in relation to its superannuation products were accurate, ASIC Deputy Chair Sarah Court said.
Mercer has accepted the court’s decision about its five marketing statements, it said in an emailed response to Reuters.
We have cooperated with ASIC and undertaken a comprehensive review of our internal marketing processes and procedures, Mercer said while assuring that members’ funds will not be used to pay the fine.
($1 = 1.5368 Australian dollars)
(Reporting by Rajasik Mukherjee, additional reporting by Aaditya Govind Rao; Editing by Mrigank Dhaniwala)
