NAB has become the first major bank to commit to the ASX's mFund, despite suggestions that the settlement service will compete with the banks' retail wealth platforms.
NAB announced yesterday that Nabtrade, NAB Asset Management and NAB Asset Servicing will join mFund.
mFund replaces the traditional paper-based processes for settling managed funds, and uses the same electronic processes (namely, CHESS) that investors and stockbrokers use to finalise ASX share transactions.
Speaking to ifa sister publication InvestorDaily, ASX senior manager for funds and investment products Marcus Christoe said the major banks have never said 'no' to mFund – despite suggestions that mFund will compete with their retail wealth platforms.
"It's all about [the banks'] competing priorities. This enterprise-wide commitment from NAB is a very large commitment from them," Mr Christoe said.
mFund has always been explicitly targeted at self-directed investors, and ASX head of customer and business development Ian Irvine told InvestorDaily that about 85 per cent of investors in the service have 'SMSF' in their CHESS HIN holding title.
"I think there's a growing recognition that mFund really plays out to the direct investor, and direct investors by definition are not being dealt with through financial planner platforms," Mr Irvine said.
The addition of Nabtrade brings the number of distributors using the mFund service to 13. Macquarie Online Trading and Bank of Queensland Trading have also joined mFund in recent weeks.
Mr Christoe said the addition of Nabtrade's stockbroker network would double the retail footprint of the service.
"This significantly increases the distribution for the true believers [ie, 'foundation' product providers] who have been with us from the start," Mr Christoe said.
He added that the ASX has had a number of calls from new fund managers expressing interest in joining the service since NAB's announcement.
There are currently 16 responsible entities/issuers using mFund, representing 35 fund managers and 125 managed funds – as well as 12 unit registries.
NAB Asset Servicing's client UBS moved 11 of its funds onto the mFund service last week.
Mr Christoe was confident NAB/MLC would gradually introduce its wide range of funds into the mFund network.
A Greens senator who was a key agitator for the royal commission has defended his reasoning in pushing for the inquiry, but conceded that it’s not c...
APRA’s sweeping changes to income protection policies are set to force more claimants back to work sooner, as the life insurance industry faces more...
The latest enforcement update from ASIC has noted that court cases brought by the regulator in the six months to December last year under its 'why not...