AUSTRLIA: Australia Stock Exchange (ASX) to launch a new managed funds settlement service

Thursday February 6 2014

ASX has received regulatory clearance to launch its new managed funds settlement solution – mFund Settlement Service. It will be launched in the first half of this calendar year following the completion of customer connectivity.

mFund has been developed for investors, brokers and fund managers to improve the timeliness and reduce the costs associated with investing in managed funds. The service will replace the traditional paper-based processes and use the same electronic system (CHESS) familiar to investors and brokers for settling – or finalising – ASX share transactions.

mFund is an electronic processing service that allows investors to use an ASX broker when they buy and sell units in unlisted managed funds. CHESS will automate and track the process of these transactions and remove much of the paperwork.

Through the use of ASX’s CHESS infrastructure, investors will receive a consolidated report that summarises all of their holdings in shares, other products such as Australian Government bonds and ETFs, and managed funds purchased using the mFund service. A broad range of unlisted managed funds (mFund products) will be admitted to ASX.

ASX is working with around 60 Foundation Members to deliver mFund. These include fund managers and their unit registries, ASX brokers, back office providers, and other distributors of financial services such as administration service providers and independent financial adviser groups.

Click on above link for further details.