Mackay Chapman April 2025 ASIC Update

In this month’s ASIC update:

• Scam alert: Consumers warned about scammers impersonating ASIC;
• ASIC provides further guidance on virtual meetings for companies and registered schemes;
• ASIC reviews car finance sector with a focus on regional and First Nations consumers;
• Active Super fined $10.5 million for greenwashing misconduct;
• ASIC targets poor superannuation advice by financial advisers;
• ASIC warns payday lenders may be violating consumer protections; and
• ASIC takes legal action against AustralianSuper over death benefit claim delays.

Scam alert: Consumers warned about scammers impersonating ASIC

ASIC has warned about scammers impersonating the regulatory body and attempting to trick consumers into transferring funds. The scam claims to be linked to an investigation into unauthorised bank access, and requests recipients move money to a "secure" account. 

ASIC emphasises that it will never ask consumers to transfer money and to look for ‘signposts’ which may identify fake communications, such as misspelt names and incorrect contact details. If you suspect a scam, ASIC advises contacting them to verify the communication and taking immediate steps to report the incident.

ASIC provides further guidance on virtual meetings for companies and registered schemes

ASIC has updated its guidance on virtual meetings for companies and registered schemes, following government recommendations from a recent review. 

The updated FAQs clarify expectations for hybrid and virtual-only meetings, including ensuring equivalent participation opportunities for members, the need for a phone line option, and the use of webcasts. 

Additionally, guidance on notifying ASIC after amending a company's constitution is provided. 

These updates reflect the Corporations Act 2001 (Cth) amendments, originally introduced during the COVID-19 pandemic.

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ASIC reviews car finance sector with a focus on regional and First Nations consumers

ASIC is reviewing the motor vehicle finance sector to improve consumer outcomes, particularly for regional, remote, and First Nations communities. 

The review will assess the compliance of lenders, brokers, and intermediaries, focusing on loan defaults, hardship practices, and dispute resolution. 

ASIC aims to address misconduct, including in used car finance, and will take enforcement action where necessary. Initial findings will be shared in the second half of 2025, followed by a detailed report.

Active Super fined $10.5 million for greenwashing misconduct

The Federal Court has fined Active Super $10.5 million for greenwashing after the fund misrepresented its investment practices. 

Despite claiming to exclude sectors such as coal mining, gambling, and oil tar sands, Active Super held investments in companies like Shell, Gazprom, and SkyCity. The court found the fund had falsely marketed itself as a responsible, ethical investment option, attracting investors under misleading claims about its environmental, social, and governance (ESG) criteria. 

ASIC’s Deputy Chair Sarah Court stressed that this penalty sends a strong message to companies making misleading sustainable investment claims.

Active Super’s misleading conduct occurred over two and a half years, impacting investor trust in ESG programs and failing to ensure proper internal systems to prevent such misrepresentations.

ASIC targets poor superannuation advice by financial advisers

ASIC has taken action against financial advisers providing substandard superannuation advice, particularly concerning contributions and superannuation rollovers. 

Between July and October 2024, ASIC’s Financial Services and Credit Panel (FSCP) examined cases where clients exceeded superannuation caps due to poor advice, leading to higher tax liabilities. As a result, the FSCP reprimanded several advisers, with one adviser required to undergo an audit of their advice and another directed to complete additional professional education. 

ASIC continues to monitor and address unsuitable superannuation advice, with compensation provided to affected clients. Misconduct in this area remains a key issue for 2025, with ASIC urging financial advisers to ensure they understand clients’ personal circumstances to give the most appropriate advice.

ASIC warns payday lenders may be violating consumer protections

ASIC has raised concerns that some payday lenders may be breaching consumer protection laws following changes to the Financial Services Reform Act 2022. 

A recent review found that certain lenders could be shifting vulnerable consumers into contracts with fewer protections, undermining the reforms' intent. The review highlighted issues such as unsuitable contracts and failure to identify the appropriate target market. 

ASIC has already taken enforcement action in the sector, including civil penalty proceedings against lenders like Ausfinancial and Ferratum. 

ASIC takes legal action against AustralianSuper over death benefit claim delays

ASIC is suing AustralianSuper, alleging significant delays in processing nearly 7,000 death benefit claims between July 2019 and October 2024. 

The claims took anywhere from four months to four years to assess, with some payments delayed by over three years. ASIC claims that AustralianSuper failed to pay benefits promptly in 752 cases, exacerbating the grief of grieving families. 

The regulator seeks penalties and other compliance measures, highlighting the importance of efficient, honest, and fair processing of death benefit claims. 

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The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such.  It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only.  You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.