Equity Trustees Limited has paid $56,340 to comply with three infringement notices issued by the Australian Securities and Investments Commission (ASIC), following allegations of misleading statements made about the investment strategy of the Artesian Green and Sustainable Bond Fund.
According to ASIC, between 10 April and 7 November 2024, the fund’s product disclosure statement, target market determination, and website claimed it invested in green, sustainable, and social corporate bonds. However, during this period, the fund held a significant portion of its investments in government and supranational bonds—contrary to its declared strategy of investing in corporate bonds.
ASIC Deputy Chair Sarah Court emphasised the importance of robust governance practices, stating: “A responsible entity must have measures in place for ensuring it complies with its obligations as an AFS licensee… ASIC’s action should serve as a reminder to trustees that they need to ensure they take their investment governance responsibilities seriously.”
Equity Trustees made the payment on 13 June 2025. ASIC clarified that payment of the infringement notices is not an admission of guilt or liability. The detailed reasons for ASIC’s concerns are outlined in the three infringement notices, now publicly available on the Credit and ASIC Act infringement notices register.
Managed investment schemes remain a cornerstone of the Australian financial system, with approximately $2.7 trillion in assets held, including $1.8 trillion in registered schemes governed under Chapter 5 of the Corporations Act. As of June 2022, 420 responsible entities were managing 3,656 registered schemes across the country.
ASIC has issued guidance through Regulatory Guide 132 to assist responsible entities in establishing compliance frameworks to ensure sound investment governance and accurate disclosures.
