The Australian Securities and Investments Commission (ASIC) has filed an appeal to challenge a Federal Court decision in relation to one of the regulator’s claims against ACBF Funeral Plans. 

Justice Scott Goodman dismissed the regulator’s allegation that the funeral insurer had falsely misrepresented it was owned or managed by an Aboriginal person or persons. 

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

ASIC 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”.

Justice Goodman, who handed down his ruling last month, also dismissed two other ASIC claims against the funeral insurer which the regulator is not appealing. 

He rejected allegations that ACBF had falsely misrepresented the Aboriginal Community Funeral Plan (ACF Plan) had approval from the Indigenous community and that the product was more beneficial to Aboriginal consumers than other funeral insurance products generally available at the time. 

But he ruled the insurer did engage in false, misleading representations selling its products to Indigenous customers and ordered the company to pay a penalty of $1.2 million. 

The misrepresentations led ACF Plan customers to believe that they would receive a lump sum payment of their chosen benefit amount, when in fact they would only be reimbursed for funeral-related expenses up to the benefit amount upon production of proof that those expenses had been incurred. 

ACBF Funeral Plans is part of Youpla Group, which collapsed last year. The Federal Government later created a redress scheme for affected Indigenous policyholders. 

Youpla’s troubles started after its use of high-pressure sales tactics to sell near-worthless products to mostly Indigenous customers was exposed during the 2018 Hayne royal commission.