Been waiting for this! About to get some more sophisticated strategies available via mFunds. About time!
mFund to expand product offering
ASIC is in the final stages of making a greater range of managed investment products available via the mFund Settlement Service.
Until now retail investors could only apply for and redeem interests in simple managed investment schemes with a shorter PDS, but a revision to the Class Order will facilitate a wider range of managed investment products to be issued and redeemed via mFund.
The ASX has applied to ASIC requesting the expansion, saying its consultation with mFund issuers and brokers indicated general support for the move. The expanded products, including certain hedge funds, comply with the criteria of the ASX Operating and Settlement Rules.
The key aspects of the class order include exempting responsible entities of managed investment schemes on mFund from only issuing interests in response to an application form included in or accompanying a PDS.
Further, as ASIC explained: "REs will generally be allowed to issue on the basis of an electronic message through the mFund settlement service indicating that the investor has been given the current version of the PDS and any supplementary PDS that apply to the particular fund."
ASIC commissioner John Price said the regulator is supportive of innovation that can benefit consumers and provide efficiencies to the industry.
"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," Price said.
"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."
http://www.financialstandard.com.au/news/view/91086939
