ADVERSE PUBLICITY ORDER

The Federal Court of Australia has ordered Mercer Superannuation (Australia) Limited (ACN 004 717 533) (Mercer) to publish this notice.

Following action by the Australian Securities and Investments Commission (ASIC), on 2 August 2024, Justice Horan of the Federal Court of Australia ordered Mercer to pay a pecuniary penalty of $11.3 million for contravening Australia’s financial services laws.

The Court declared by consent that Mercer contravened these laws by making false or misleading representations on its website about the sustainable nature and characteristics of the Sustainable Plus investment options offered by the Mercer Super Trust, a registered superannuation entity of which Mercer is the trustee.

The statements on Mercer’s website represented that funds invested in the Sustainable Plus investment options were not, and would not be, invested in companies involved in, or deriving profit from, the production or sale of alcohol, gambling or the extraction or sale of carbon intensive fossil fuels when these exclusions were subject to exceptions. These statements were false or misleading and liable to mislead the public because from 12 November 2021 to 1 March 2023, the Sustainable Plus investment options had exposure to up to:

• 15 companies involved in the extraction or sale of carbon intensive fossil fuels;
• 15 companies involved in the production of alcohol; and
• 19 companies involved in gambling.

Mercer acknowledges the need for accurate disclosure concerning the sustainable nature and characteristics of its superannuation investment options. Mercer remains committed to delivering the best possible outcomes for members, underpinned by transparent and reliable information.

Further Information

Mercer’s misconduct contravened the following financial services laws:

• section 12DB(1)(a) of the Australian Securities and Investments Commission Act 2001 (Cth); and
• section 12DF(1) of the Australian Securities and Investments Commission Act 2001 (Cth).

For further information about Mercer’s misconduct, see the following links:

• statement of facts agreed between ASIC and Mercer (annexed to Justice Horan’s judgment)
• Justice Horan’s judgment; and
• ASIC’s media release.