Fund Product, Company and Regulatory Updates as at 31 March 2020
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Product Updates
CFS/Bankwest cash management account winding up
The BWA Cash Management Account distributed by Colonial First State and issued by Bankwest is to terminate in June after a review. The decision had been made in 2019, and is not related to the current economic climate.
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Company Updates
MTAA and Tasplan merger delayed
MTAA Super and Tasplan have plotted extra time into merger preparations due to the COVID-19 crisis. The merger is now planned for 31 March 2021, instead of 1 October 2020. The merger is still to go ahead; that has not changed.
Zenith wants to back out of Chant West sale
Zenith Investment Partners wants out of its proposed purchase of Chant West’s superannuation arm for $12 million, citing the business has been materially affected since February. Chant West wants the sale to go ahead. In February, Chant West Holdings and Zenith (via subsidiary CW Bidco Pty Limited) entered a sale agreement.
Chant West reported it had received a letter from Zenith’s subsidiary requesting an immediate termination of the sale agreement on the grounds that the Chant West superannuation business situation has changed. Chant West denies this. Chant West requested the ASX to halt trading of its shares until a later announcement is made.
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Regulatory Updates
Storm Financial founders breached duties, court finds
A Federal Court has found Storm Financial Group’s directors breached their directors’ duties, with their appeal of the 2016 decision being dismissed. Former directors, Emmanuel and Julie Cassimatis, had the appeal dismissed in a two-to-one majority.
