Spaceship restarts investment operation but wait continues for superannuation customers

Spaceship can restart its investment operation but is still seeking to secure approval for its superannuation business after being slapped with an ASIC ban three weeks ago.

Superannuation and investment player Spaceship has secured permission from the corporate regulator to re-engage with some customers after stop orders were imposed almost three weeks ago.

The Grok Ventures and Airtree-backed super operator, which targets younger Australian customers, told investors on Friday it was now able to restart operations for its Voyager investment portfolios after securing permission from the Australian Securities & Investments Commission.

But Spaceship is still seeking to secure ASIC approval to allow it to recommence its super business, which remains barred by ASIC’s orders over concerns about its investment strategy.

On June 1 ASIC imposed an interim ban on Spaceship taking on new customers and prevented existing customers making new investments over concerns about the firm’s target market determinations.

ASIC is worried about Spaceship’s medium to high-risk investments in the tech sector.

Spaceship said it had made changes to its target market determinations to address ASIC’s concerns and would recommence operations of its Spaceship Voyager portfolios “next week”.

“Spaceship is working closely with Diversa (the trustee of Spaceship Super) to quickly respond to ASIC’s concerns on the Spaceship Super TMD,” the company said.

Spaceship is still seeking to secure approval from ASIC over its superannuation business.

The ASIC blocks have been a major problem for Spaceship.

Customers were still able to access accounts and withdraw funds, but Spaceship was not able to take on new business.

Some of the almost 18,000 members of the fund have expressed concern over the length of the disruptions.

One investor told The Australian he was concerned over the disruptions to the fund and the fund’s recent decision to lift fees.

Spaceship said it would introduce a percentage-based management fee across its three portfolios, calculated on a net asset value.

“For customers with higher balances, this will mean an increase in fees and costs,” Spaceship said.

“This decision allows us to create a sustainable business so that we can reinvest into our technology, team and product.”

One Spaceship investor said he wanted to withdraw funds from the investment platform after the weeks of uncertainty, but capital gains tax posed a major barrier to his exit.

ASIC’s moves against Spaceship were the first time the regulator has exercised its powers against a superannuation provider over its target market determinations and mark a step-up in its market surveillance activities.