The initial ‘expected date of ASX trading’ in the 21 March prospectus was Thursday 15 May, but that has been pushed back after the publication of a replacement prospectus on 28 April.
Speaking to InvestorDaily, managedaccounts.com.au executive chairman Don Sharp said there was delay in getting the initial prospectus approved by ASIC because the regulator “didn’t like a couple of our comments”.
The offending comments in the prospectus related to a surveillance visit by ASIC earlier this year, he said.
“In the prospectus we said we had a surveillance visit, and we hadn’t heard back from ASIC but we didn’t expect any issues. ASIC took exception to that, so we had to take that out of the prospectus,” said Mr Sharp.
While the surveillance visit has delayed the listing of the company, Mr Sharp said the regulator delivered a “clean bill of health” – with one minor exception.
“Under the MDA regime, when a client first comes onboard they have to get advice that the MDA is suitable for their use. Then within 13 months they’ve got to get further advice that it’s appropriate for their needs,” said Mr Sharp.
“We get the planning group to enter the date they’ve done the Statement of Advice, and ASIC’s view was that we should get that in writing from the dealer group,” he said.
The firm has since made the change to its business, which Mr Sharp described as “nothing of significance”.
“They looked through our whole business model and they’ve come to the conclusion what we’re doing is kosher,” he said.
The company’s initial public offering (IPO) closed on 16 May with $3 million raised from 460 shareholders, said Mr Sharp.
“We raised $3 million, which was 50 per cent more than the minimum we were looking for,” he said.
As of the end of the IPO, the company has $6.7 million in cash, which more than covers the $5 million the firm needs for ASIC’s capital requirements for MDA providers, said Mr Sharp.
The company also went past the “billion dollar mark” in funds under advice as of Monday 26 May, he added.
