Pathfinder clarifies ethical investment exceptions after censure

The Financial Markets Authority found 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.

The FMA was concerned about a lack of information and qualification 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. The companies concerned have been granted exemptions in line with Pathfinder’s ethical investment policy.

In a statement, a spokesperson for Pathfinder says the KiwiSaver provider removed the ads as soon as the FMA raised concerns and has added more detailed information about its ethical investment policy to its website and blogs.

“Notably, the FMA has not censured us for acting in breach of our Ethical Investment Policy, rather they are highlighting a failure to qualify the two advertisements with information about our exceptions at the time the advertisements were running.