In this Funds Update for 1 August 2025.
- Treasury announces consultation on sustainable investment product labels
- Full Federal Court upholds decision that a particular crypto-asset is not a financial product
Treasury announces consultation on sustainable investment product labels
On 18 July 2025, Treasury released Consultation Paper: Sustainable Investment Product Labels (Consultation Paper), inviting feedback on policy options for the development of an Australian sustainable investment product labelling framework, a key initiative under the Government's Sustainable Finance Roadmap, which HSF Kramer covered when it was published in June 2024 (see here).
The Consultation Paper highlights perceived issues with the current Australian framework, including in relation to the lack of standard practice and terminology in sustainable investing and greenwashing/greenhushing risks.
Treasury is seeking feedback to guide the development of the product labelling framework to support investors to make informed decisions in relation to sustainable investing.
Submissions close on 29 August 2025.
Full Federal Court upholds decision that a particular crypto-asset is not a financial product
On 24 July 2025, the Full Federal Court dismissed ASIC's appeal against a decision that a particular crypto asset is not a financial product, holding that the relevant crypto-asset product was not a financial product within the meaning of the Corporations Act 2001 (Cth) (Corporations Act). The full decision is available here.
The Court held that the crypto-asset product (labelled by the issuer as a "Cryptocurrency Earn Option") did not meet the definition of a debenture under section 9 of the Corporations Act, finding that it was not money that was deposited with or lent to the issuer, but rather that the crypto-asset was fungible intangible property of a different kind. As a result of the product not being a financial product under the Corporations Act, the issuer of the product was not required to hold an Australian financial service licence.
We reported on the original Federal Court of Australia appeal here and the primary decision here.
ASIC has stated that it is carefully considering the decision and its implications.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
