The Australian Securities and Investments Commission (ASIC) has appealed part of a Federal Court decision handed down last month in relation to the regulator’s case against ACBF Funeral Plans.

Justice Scott Goodman had ruled the funeral insurer made false, misleading representations selling its products to Indigenous customers and ordered the company to pay a penalty of $1.2 million.

But he dismissed three other claims made by ASIC and the regulator is appealing against his decision on one of the allegations: that the funeral insurer made representations to potential customers it was owned or managed by Aboriginal persons, when that was not the case.

“At first instance, the Court found such representations were made but was not satisfied those representations were false. ASIC is appealing that finding,” the regulator said in a statement today.

Deputy Chair Sarah Court says the regulator decided to challenge the decision “because we are concerned that representations were made to First Nations people that ACBF and its funeral plan had Aboriginal ownership and management which, in ASIC’s view, had the effect of deceiving many Aboriginal consumers into buying the plan”.

The appeal will be heard by the Full Federal Court on a date to be determined.

ASIC is not appealing the Court’s findings in relation to the remaining two representations or the Court’s findings in relation to ACBF’s parent company Youpla Group. The court did not accept that Youpla was involved in the contravention by the funeral insurer.

Youpla collapsed last year and the Federal Government subsequently set up a redress scheme for affected Indigenous policyholders. Its use of high-pressure sales tactics to sell near-worthless products to mostly Indigenous customers was exposed during the 2018 Hayne royal commission.

Click here for the Federal Court ruling.