CPA Australia has urged the federal government to tighten rules around the labelling and marketing of managed investment and superannuation products, warning that unverified claims about sustainability could erode trust among investors. The organisation said stricter regulation is needed to protect consumers from misleading promotions and ensure that financial products reflect the ethical priorities they claim to represent.
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CPA Australia’s ESG lead Patrick Viljoen said investors often assume that products promoted as sustainable are backed by rigorous oversight. He cautioned that the market is “awash” with options claiming to be socially responsible, yet many of these claims lack the verification investors expect. The organisation’s submission to the Treasury argued that compliance rules must catch up with consumer expectations to avoid misleading conduct and to maintain confidence in sustainable finance.
Viljoen pointed to the government’s consultation on a clearer product labelling framework as a step in the right direction. CPA Australia recommended mandatory disclosures that explain how sustainability factors are integrated into investment processes. This would apply to any product labelled as “responsible,” “ethical,” “sustainable,” or “green,” requiring both upfront explanations and ongoing verification. According to the accounting body, such measures would bring product marketing closer to reality and reduce the risk of greenwashing.
The proposal also emphasised learning from global models. CPA Australia cited the UK and US, where regulations require at least 70 per cent of an investment product’s assets to meet its sustainability objective. By aligning with international standards, Australian regulators could give investors greater certainty that their money is managed in line with advertised principles. Viljoen added that investing in ethical products should not involve navigating unclear or contradictory disclosures, calling for uniform rules that make consumer decisions more straightforward.
The stakes are significant given the size of Australia’s superannuation system. With assets now valued at over A$4.3 trillion, as reported in the APRA superannuation statistics for June 2025, superannuation funds represent one of the largest financial markets in the country. Any move toward stricter sustainability labelling could therefore have far-reaching consequences for both fund managers and everyday contributors. The figures underline why CPA Australia is pressing for higher accountability standards.
Regulators are already responding to these concerns. ASIC recorded 47 interventions in the 15 months to June 2024 to deter greenwashing misconduct, including two Federal Court proceedings and more than A$123,000 in infringement notices. The regulator said the actions were necessary to protect investors and to maintain the integrity of financial markets. These interventions included corrective disclosures, infringement penalties, and significant civil proceedings against major superannuation and investment firms.
CPA Australia argued that while enforcement is increasing, long-term clarity requires standardised product labels and uniform disclosure obligations. Without these measures, the organisation warned, the credibility of sustainable investment products will continue to be undermined. For investors, the choice is not simply about aligning with personal ethics, but about having reliable information to evaluate risk and return. Regulators and industry groups now face the task of balancing market innovation with the need for trustworthy disclosures, a balance that will determine whether consumer confidence grows or falters in the years ahead.
