Fund Regulatory Update

Vanguard issued formal warning by NZ regulators

The Australian Securities and Investments Commission (ASIC) issued Vanguard three infringement notices in 2022 for greenwashing. As a result, New Zealand’s Financial Markets Authority (FMA) has issued Vanguard with a formal warning for failing to disclose the infringements from ASIC, as the three funds are also available to New Zealand investors.

ASIC urges super funds to improve life insurance arrangements for members

ASIC is encouraging superannuation funds to improve life insurance arrangements to improve member outcomes. After a review of insurance within super and subsequent improvements by trustees, ASIC says there is still room for improvement. Individual funds have received a comprehensive letter outlining where improvements could be made.

ALT Financial Group convicted on multiple charges

ALT FG, a holding company of a larger group of companies that operate as an alternative asset management company, has been convicted and fined $123,000 for failing to lodge financial reports with ASIC. The company failed to appear in court and in its absence was charged with failing to lodge financial reports for 2018 and 2021 financial years; failing to report to members for the same years; failing to hold an annual general meeting; and failure to comply with the requirement to have at least three directors.

Cartesian Corporate Finance license suspended

ASIC has suspended the Australian financial services (AFS) licence of Cartesian because the company no longer operates a financial services business. If the company does not recommence as a financial services provider, the licence will be cancelled.

ACVM licence cancelled

The AFS licence of ACVM has been cancelled after the company failed to meet its financial reporting obligations.