ASX mFund set to launch after receiving regulatory approval
The Australian Stock Exchange (ASX) will launch its listed managed funds trading and settlement service in the first half of this year after it received regulatory approval from the Australian Securities and Investments Commission (ASIC).
The service, previously called Aqua II but to be known as mFund Settlement Service, has signed 60 Foundation members which are made up of fund managers, unit registries, ASX brokers, back office providers, administration service providers and independent financial adviser groups.
The service will use the ASX’s CHESS system to buy and sell units in unlisted managed funds. It will track transactions to provide a consolidated report covering an investor’s holdings in shares, Australian Government bonds, exchange traded funds and managed funds purchased using the mFund service.
ASX deputy chief executive Peter Hiom said the mFund service would broaden the industry’s distribution network and provide investors with an efficient method for transacting in managed funds.
ASIC also provided relief for retail clients applying for interests in managed investment schemes through mFund Settlement Service. It exempted the ASX from needing an Australian Financial Services Licence for operating mFund.
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