Spaceship hit with ASIC block to stop superannuation firm from taking on new clients

ASIC has hit Spaceship with an interim block over fears around its product design.

The blocks affect Spaceships’s Universal, Earth and Origin portfolios that form part of the Voyager portfolios.

The corporate regulator has slapped Airtree and Grok Ventures-backed superannuation player Spaceship with orders blocking it from taking on new customers or allowing existing customers to continue investing.

The interim stop orders relate to concerns by the Australian Securities and Investments Commission over Spaceship’s target market determinations.

ASIC requires issuers of consumer product to specify the conditions and restrictions on its products and detail who is likely to acquire them.

Issuers are also required to detail how their products will be monitored and reviewed and determine if those products are “consistent with their (customer’s) likely objectives, financial situation and needs”.

The blocks affect Spaceships’s Universal, Earth and Origin portfolios that form part of the Voyager portfolios.

ASIC’s interim order will stay in place for up to 21 days.

If ASIC does not rescind the block, Spaceship may make an application to puts its views to an “independent delegate”.

Spaceship’s trustee, Diversa, has also been issued interim stop orders in relation to the company’s products.

In a statement, Spaceship said it was “taking immediate steps to address ASIC’s concerns” and would work with ASIC to address the issue.

Spaceship customers can continue to access the app and interact with the products.

The moves against Spaceship are the latest ASIC action to target the firm.

Spaceship director and chairman Paul Dortkamp was last year banned for two years as an officer and responsible manager by ASIC after he was found to have failed to understand “all the financial services” offered by Spaceship under its licence.

However, this ban was overturned by the Administrative Appeals Tribunal in December.

Spaceship’s former chief executive Paul Bennets was also banned by ASIC for six years after the regulator found he dishonestly obtained a professional designation.

ASIC found Mr Bennets used one of the firm’s compliance officers to do the work required to obtain an Australian Institute of Company directors qualification.

Spaceship, founded in 2016, offers investment and superannuation options targeted at younger Australians.

The firm has also faced ASIC intervention over its marketing, with allegations of misleading and deceptive conduct over Spaceship’s claims.

This saw the company pay a $12,600 penalty.