Fund Product, Company, and Regulatory Updates as at 5 July 2016

Product Updates

BetaShares launching global sector ETFs locally
BetaShares is launching Australia's first Global Energy Companies exchange traded funds (ETFs) trading under FUEL. The ETFs allow access to the largest global energy companies including Exxon, Chevron, Royal Dutch Shell, BP, and Total. The fund is hedged on the Australian dollar. 

Company Updates

REI Super goes public
Industry superannuation fund for real estate employees, REI Super, is going public, which means anyone can join the fund. 

MyLifeMyMoney (Catholic Super) merges with Transcomm Credit Union
Catholic Super's MyLifeMyMoney Superannuation Fund has agreed to a merger with the Transcomm Credit Union. Trustee for MyLifeMyMoney, CSF, will acquire 100 per cent of Transcomm's member shares. The merger is awaiting regulatory approval, and the deal offers Transcomm members a cash payment of $2,039 for their shares. 

Investec invests in Wholesale Investors
Investec has bought into Wholesale Investor, a company that connects high-net-worth investors with emerging companies. The company was set up in 2008 and now has over 13,000 subscribers. 

Contango divests funds management arm
Contango Microcap has sold its asset management business, Contango Asset Management (CAM), creating an entity named CAM SPV. The investment team created the new funds management business, with the purchase price being $13 million. 


XTrade forced to change client money handling
ASIC has intervened to licensed retail OTC derivatives issuer Xtrade (formerly O.C.M Online Capital Markets) to change the way the company handles client money after concerns were raised about compliance with the Corporations Act. The Act requires client money to be deposited into client trust accounts on the day it is received, or the next business day, but XTrade was only reconciling periodically, with its parent company depositing a 'buffer' to cover shortfall. This is not allowed. 

Etern Wisdom Global, Ergo Capital, and Advamode AFSLs cancelled
Etern Wisdom, a derivatives and foreign exchange contract financial advice firm, has failed to lodge financial statements, and has had its Australian financial services licence cancelled as a result. Ergo Capital has failed to comply with its licence obligations and subsequently has had its Australian financial services licence cancelled. Advamode Financial has had its Australian financial services licence cancelled after the company was placed into liquidation on 4 May 2016, after licence conditions were applied in September 2015. 

Macquarie Bank's AFSL conditions dropped
Macquarie Bank's licence conditions have been removed after a KPMG review into the effectiveness of Macquarie's client money framework. As a result, Macquarie has discontinued its case in the Administrative Appeals Tribunal. 

ASIC commences proceedings against Macquarie IM
Macquarie Investment Management is due for court regarding its role as the responsible entity for the van Eyk Blueprint International Shares Fund (VBI Fund). The proceedings involve Cayman Island investments of over $30 million, with Macquarie so far admitting to five contraventions of the Corporations Act. 

Macquarie Securities (Australia) adds to Macquarie woes with contraventions
Macquarie Securities (Australia) Limited has paid a penalty of $120,000 after receiving an infringement notice by the Markets Disciplinary Panel (MDP), who had reasonable grounds to believe that Macquarie Securities contravened the Corporations Act.