Melbourne Securities Pays ASIC $13k Fine

Australian securities regulator ASIC said Melbourne Securities will pay over $13,000 to settle allegations its Bloom Climate Impact Fund invested in fossil fuel firm GE after claiming it avoided coal/gas stocks.

Key Insights

  • Melbourne Securities pays $13k over allegations its “green” fund invested in fossil fuel firm GE
  • ASIC said Bloom Climate Impact Fund’s disclosure claimed it avoided coal/gas companies
  • Watchdog contends up to 33% revenue thresholds let non-excluded assets be purchased

SYDNEY (MarketsXplora) – Australian securities watchdog ASIC said Melbourne Securities Corporation has paid over A$13,000 ($9,000) to settle a case over allegations it misled investors that its climate-themed investment fund avoided fossil fuel firms.

ASIC said between March 2022 and June 2023, Melbourne Securities’ Bloom Climate Impact Fund product disclosure statements (PDS) stated it would stay away from excluded activities like fossil fuels.

But Bloom used undisclosed revenue thresholds allowing it to invest in companies that got up to a third of revenue from areas like coal and gas, ASIC said in an infringement notice on Thursday.

“ASIC believes that applying a negative screening process which allows a company to derive up to 33% of its revenue from an excluded activity is not seeking to avoid investments in those activities,” it said.

As a result, Bloom acquired stock in gas-reliant General Electric, which accounted for nearly 1% of its funds under management, ASIC alleged.

GE was sold in May 2023, a month before the A$1.7 million Bloom fund was terminated.

Melbourne Securities paid the fine without admission of liability. Climate-branded investments have come under greater scrutiny globally after criticism some allow high fossil fuel exposure.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

Leave a Reply