Class order 13/1621 exempts responsible entities of managed investment schemes available through the mFund Settlement Service from only issuing interests in response to application forms included in product disclosure statements (PDSs), according to ASIC.
Responsible entities will “generally” be permitted to issue interests on the basis of an electronic message through mFund, indicating that the investor has received a current version of the PDS, said the regulator.
The electronic message must be sent by an Australian Financial Services Licensee or an authorised representative, and only if the investor has been given the latest version of the PDS for the scheme, ASIC said.
ASIC commissioner Greg Tanzer said the regulatory relief would make the funds management industry more efficient whilst ensuring investors still receive a PDS before investing.
“This will make the process of acquiring and disposing of interests in managed investment schemes more efficient and lower operational costs for the investment management industry as a whole,” said Mr Tanzer.
Assistant Treasurer Arthur Sinodinos has declared mFund an exempt market “in order to facilitate [its operation]”, according to ASIC.
“This means ASX Settlement will not have to hold an Australian Market Licence and a revised set of ASX Operating and ASX Settlement Operating Rules have been made,” the regulator said.
The use of mFund is also limited to simple managed investment schemes.
“In addition ASIC has exempted ASX and ASX Settlement from requiring an AFS licence for operating mFund. ASX already has an Australian Market Licence for operating its financial markets and ASX Settlement has a Clearing and Settlement Licence,” ASIC said.
“With the completion of these regulatory steps, barriers have been removed under the Corporations Act to the ASX being in a position to launch mFund.”
