ASX Considers Closing Settlement Service for Unlisted Funds

ASX announced it will issue a consultation and seek feedback on the proposed wind down and closure of its managed fund settlement service known as 'mFund'.

mFund products are unlisted managed funds admitted for settlement under the ASX operating rules and available to investors through the mFund settlement service.

mFund launched approximately nine years ago to provide a faster and more efficient method for investors and financial advisors to access unlisted managed funds. Thus far, mFund has only attracted AUD 1.6 billion (USD 1 billion) in funds under management across 232 funds, potentially due to a preference for ETFs, which in Australia collectively manage AUD 136 billion across 283 funds.

In a recent, ASX said it is aiming to release a consultation paper in June 2023 to seek feedback regarding the future of mFund. ASX expects the consultation period to remain open for six weeks.

"ASX is giving this notice in the interest of transparency and to give our stakeholders advance notice of the consultation. A final decision regarding mFund has not yet been made and the mFund service will continue to operate as normal throughout the consultation process."

(Source: Regulation Asia)