ACBF Funeral Plans cops $3.5 million penalty for "misrepresenting" it was Aboriginal owned

The Federal Court has ordered a $3.5 million penalty against a funeral expenses insurance provider for misrepresenting that it was Aboriginal owned or managed, when it was not.

The multimillion-dollar penalty is against ACBF Funeral Plans (ACBF), a firm that is now in liquidation.

The punishment, announced in a media release from the Australian Securities and Investments Commission (ASIC), said the Court order follows a successful ASIC appeal.

In 2023 the Court ordered a $1.2 million penalty against ACBF, a company that sold funeral expenses insurance to Aboriginal people.

At that time, the Court found that ACBF, which was part of the Youpla Group, “represented” to insurance holders that they would receive a lump sum payment of their chosen benefit amount for funeral expenses.

However, the regulator said the company only reimbursed “for funeral related expenses up to the benefit amount upon production of proof that those expenses had been incurred.”

At the time of that ruling an ASIC release said the court did not agree that ACBF had falsely represented that it was Aboriginal owned or managed, or that the ACF Plan had Aboriginal community approval.

The new ruling announced today overturns much of that earlier judgement.

After the collapse of Youpla Group, the Federal Government established the Youpla Group Funeral Benefits Program to help impacted families.