Vanguard Investments Australia Ltd. has been fined by the Australian Securities and Investments Commission (ASIC) for breaching the Corporations Act with its product disclosure statements. ASIC issued three infringement notices to Vanguard Investments Australia Ltd. for misleading investors about their ability to prevent investing in tobacco production, manufacturing, and sales.
Vanguard Investments Australia Ltd. had claimed that their product disclosure statements would prevent investment in tobacco production, manufacturing, and sales. However, ASIC found that this claim was false and that investors may not have been able to prevent investing in the tobacco industry. This has resulted in the infringement notices being issued by ASIC to Vanguard Investments Australia Ltd.
investors can feel strongly about not investing in tobacco production, manufacturing and sales, and where tobacco-exclusion Investments are claimed, they should be available. ASIC’s Deputy Chair, Daniel Crennan QC, stated that “Misleading investors about their ability to prevent investing in tobacco production, manufacturing and sales is unacceptable. investors must be able to trust that they can make informed decisions about their Investments.”