The corporate regulator has issued first of its kind stop orders against a superannuation product and a CFD product for deficiencies in their Target Market Determinations.

Spaceship Capital

The corporate regulator has issued stop orders on three managed funds and one superannuation product promoted by Spaceship Capital.

In a media release on Friday morning, ASIC said the interim stop order regarding Spaceship Super is the first on a superannuation product under the Design and Distribution Obligations.

The stop orders, in place since 31 May 2023 apply to:

  • Spaceship Super, a sub-plan of Tidswell Master Superannuation Plan, issued by Diversa Trustees; and
  • Spaceship Earth Portfolio, Spaceship Origin Portfolio, and Spaceship Universe Portfolio (together, the Spaceship Voyager Funds), issued by Spaceship Capital.

The interim orders stop Spaceship Capital and Diversa from issuing interests in, giving a product disclosure statement for, or providing financial product advice to retail clients recommending an investment in Spaceship Super and the funds.

Mitrade

In a separate release, ASIC announced an interim stop order preventing Mitrade Global from opening trading accounts or dealing in contracts for difference (CFDs) or margin foreign exchange contracts (margin FX) to retail investors.

The regulator’s action was in response to concerns that Mitrade failed to take reasonable steps likely to result in distribution conduct being consistent with its TMD.

This action is ASIC’s first use of its stop order powers in response to a contravention of the reasonable steps obligations regarding a financial product since DDO took effect in October 2021.