The introduction of the mFund Settlement Service brought with it a number of distinct changes to traditional ASX rules, procedures and operational processes. A primary change impacting Participants was the introduction of a requirement to ensure that the fund PDS (and the mFund Fact Sheet) are each provided to the investor prior to the submission of an application request.
This obligation applies to both Initial Applications and Subsequent Applications. It also applies to mFund Transfers and Switches.
The application message which is submitted to ASX CHESS via the Settlement Participant (MT726) includes confirmation that the PDS has been provided to the investor (Bit Position 231) and the PDS Issue Date (Bit Position 236)
To address these obligations, online brokers will typically ensure that the PDS (and mFund Fact Sheet) are available in the form of a link, and prevent progression to the order submission screen until each have been downloaded.
Detailed information about the provision of a PDS can be found in the following documents:
In taking reasonable endeavours to ensure that they are able to display the most recent PDS, Participants may wish to consider utilising ASX’s Reference Point E15 file which is a daily file which contains a link to the last PDS and Fund Profile lodged on its Market Announcements Platform by the Issuer. As the file is not released intra-day, any updated PDS lodged on ASX MAP intraday will not be represented until the following day’s file.
Fields include: ASX Code, ISIN, APIR Code, Fund Name, Fund Setup Date, Fund Commencement Date, PDS Issue Date, PDS Link, Fund Profile Link, Fund Status, Pricing Frequency, Min Application Amount, Application Settlement Cycle, Redemption Settlement Cycle.
Where an Issuer lodges an updated PDS on MAP intra-day, it will be visible under the Fund Info tab https://www.asx.com.au/mfund/mfunds-prices.htm.
What obligations does a PISP have when assessing the PSD Issue date provided in message MT726?
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Pursuant to OR S10A.4.5(a), Issuers (via their PISPs) are unable to issue units to a client without knowledge that the client has received the most recent PDS. This determination can be made by comparing the PDS Date entered by the Settlement Participant into the application message (MT727) to the date of the most recent PDS issued.
The PISP is the recipient and respondent of this message. As such, Issuers need to ensure that the PISP is made aware of any updates to a PDS by the Issuer. This communication in turn enables the PISP to ensure that it is always able to comply with SOR 18.3.3(c).
OR S 10A.3.3(f)(iii), 10A.4.2(f), and OR S10A.6.5 require Issuers to provide to ASX any PDS updates or replacements promptly or at the same time as it is sent or made available to investors or prospective investors.
In practise the following steps should be followed:
Issuers and the PISP acting on their behalf should also be aware of the additional obligations contained in OR S10A.4.5(b)-(e) and the corresponding Procedures, including an obligation to ask investors to confirm that they have received the latest PDS and subsequently an obligation for Issuers to report to ASX any instances of the latest PDS not being provided, where confirmed by the investor.