ASIC moves AQUA a step closer
The ASX Managed Funds Services (AMFS), formerly known as AQUA II, has come a step closer to operational reality with the Australian Securities and Investments Commission (ASIC) releasing a consultation paper proposing relief for retail clients who apply for an interest in a registered simple managed investment scheme (MIS) through the AMFS.
However, the narrowness of the parameters outlined in the ASIC consultation paper is likely to disappoint a number of financial services product manufacturers who had been looking to the ASX services as a means of launching significant new products into the market.
The ASIC consultation paper makes clear, however, that the proposed relief will apply to "responsible entities of registered simple managed investment schemes" for applications made through the AMFS.
The consultation paper states that "The AMFS will only be open to simple managed investment schemes that are eligible to use the shorter Product Disclosure Statement (PDS) regime under Sch 10E of the Corporations Regulations 2001, as affected by any applicable ASIC modifications".
It went on to say, "this means, for example, that hedge funds and schemes with substantially illiquid assets will be excluded".
ASIC Commissioner Greg Tanzer said the proposed relief would make it quicker, easier and potentially cheaper for investors to apply for an interest in a simple MIS.
"‘Society is moving in a direction that requires quick, practical and efficient ways of operating," he said. "The proposed relief will provide a more efficient application process, because the requirement for the investor to complete an application form will be replaced with an electronic message that performs the same function."
He said that, significantly, the message would also indicate whether the investor had downloaded the current PDS from the AMFS broker's website or otherwise been given the current PDS before applying.
The ASX indicated last year that it hoped to have the new platform up and running by the first half of 2013; however the ASIC consultation paper says submissions are due by 11 July, 2013.
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