ASIC has issued an instrument to amend Class Order 13/1621, which will see a much wider range of products added to the mFund range. Previously, only “simple managed investment schemes that have a shorter PDS” were deemed to be appropriate for the settlement service, according to a statement from the regulator.
The ASX previously made a formal appeal to ASIC for an expansion of its product suite, so that a wider range of managed investment products could be issued and redeemed through the mFund service, following consultation with stockbrokers and mFund issuers.
“ASIC supports innovation that has the potential to provide benefits to consumers and efficiencies to industry,” said ASIC commissioner John Price.
“By extending the range of products that are available through the mFund settlement service, the relief will facilitate the potential for greater efficiency in the industry without compromising the requirement for an investor to receive disclosure needed, before investing.
“This expansion can help make the process of applying for and redeeming interests in managed investment schemes more efficient for a greater range of products and can help lower operating costs for the investment management industry.”
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