ASX mFund settlement service clears regulatory hurdle

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By Tony Dhar and Jacki Wang

The Australian Securities and Investments Commission (ASIC) issued Class Order [CO 13/1621] on 7 January 2014 to exempt responsible entities (REs) from the application form requirements of section 1016A.

Subject to certain conditions, REs who use the mFund settlement service will be permitted to issue interests in simple managed investment schemes in response to electronic applications made through mFund. REs will also be able to rely on an electronic confirmation accompanying the application that the investor was given the scheme PDS before making their application. There are additional requirements imposed on advisers who submit application forms using the mFund.

The regulatory hurdles under the Corporations Act have been cleared to enable the mFund service to be offered. However, no launch date has been announced while the Australian Securities Exchange (ASX) engages with AUSTRAC on the application of the AML/CTF rules…

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