Background
The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – censured Pathfinder Asset Management (Pathfinder) under the Financial Markets Conduct Act 2013 (FMCA).
Between October 2021 and May 2024, Pathfinder made misleading statements about the nature of its KiwiSaver Funds’ ethical investments in two advertisements on social media and its website relating to animal testing and fossil fuels.
In an advertisement on social media, “Tara’s story”, Pathfinder represented that its funds did not invest in companies involved in animal testing. In a second advertisement on its website, “Estefania’s story”, Pathfinder represented that its funds did not invest in companies involved in fossil fuels or animal testing. Tara’s story ran for approximately 23 months, and Estefania’s story was available on Pathfinder’s website for approximately 13 months.
The FMA’s view is that both advertisements were misleading because there was no information or qualifications included which informed investors that Pathfinder’s funds held investments in five companies involved in animal testing for pharmaceutical purposes and one company that uses fossil fuels to generate electricity. While Pathfinder’s Ethical Investment Policy generally excludes investments in companies deriving greater than 5% of revenues from fossil fuel activities and animal testing, these companies had been granted exceptions in accordance with the Policy’s criteria.
December 2024
The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko – has censured Pathfinder Asset Management (Pathfinder) under the Financial Markets Conduct Act 2013 (FMCA).
