Spaceship Have Received an Interim Stop Order from ASIC

zazutata on 01/06/2023 - 09:26
Last edited 01/06/2023 - 09:26

From the Spaceship website this morning - I've removed some of the non-essential text. I have some investments (not super) with them and, being no expert, am questioning whether I leave money in there or take the hit and withdraw funds.

Spaceship has received an interim stop order issued by the Australian Securities and Investments Commission (ASIC) relating to the target market determinations (TMD) of a number of its products. In complying with the interim stop order, Spaceship has temporarily suspended the ability for new customers to sign up to the Spaceship Universe Portfolio, the Spaceship Earth Portfolio, and the Spaceship Origin Portfolio (together, the Spaceship Voyager portfolios), as well the ability for current customers to make additional investments.

Spaceship has also temporarily suspended distribution of Spaceship Super in its capacity as promoter. Spaceship is taking immediate steps to address ASIC’s concerns and is committed to working proactively to address the issue.

Current customers may continue to log in to the Spaceship app, and other than the restrictions above, customers can continue to interact with their current products.
The customer support team continues to be available, including by in-app chat

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Comments

    • Ocker on 01/06/2023 - 10:34

      Probably no great shakes. Admin issue only.
      HUMM went through the same trading halt in the morning a few days ago and obliged ASIC then relisted next day.

  • kawinuyo on 01/06/2023 - 09:56
    +7

    Glad I left when they started charging

  • Master Bates on 01/06/2023 - 09:57
    +4

    A Target Market Determination is a document which describes the type of customers who a product is appropriate for, based on their likely needs, objectives and financial situation (target market), and establishes the distribution conditions and restrictions around how the product can be distributed to customers.

    Source

    Sounds like a compliance issue, not necessarily a liquidity problem (or is it?).

    • zazutata on 01/06/2023 - 10:04

      Speaking to a colleague about this…there was a rumour of inappropriate advertising or something similar

      • happydude on 01/06/2023 - 12:46
        +1

        That is exactly what a target market determination is. It is a document that say who your product is suitable for, and how you will market to that customer.

        For example, going door to door at the palliative care centre selling life insurance where the only possible outcome is a net loss to the customer, would not be allowed.

        They won't be doing something that extreme, but you get the idea. They need to be responsible marketing their financial products and appropriately document that marketing.

        I would say it would have something to do with the high risk of the product and the target market being misaligned. It seems to be marketed as a saving product, but the TMD says the product is high risk.

        This was the TMD before they nuked their site. https://web.archive.org/web/20230323104944/https://www.space…

        • Cluster on 01/06/2023 - 12:53

          Just skimming through the TMD section, it appears to be appropriate. It's not an investment for the short term, or for people requiring low risk. However there may be an issue with their advertising not matching the document. Their web site for example looks like it's almost gamified. Invested some money? Stars and party streamers appear on screen. I mean… really.

          • happydude on 01/06/2023 - 13:02
            +4

            @Cluster: From the home page:

            • "I've been able to use Spaceship to help kick start not only my savings, but my investment habits."
            • "Grow your wealth with our investment and super account"

            Compared to the TMD:

            • The Spaceship Universe Portfolio has a very high risk profile due to its allocation to growth assets
            • This product is likely to be appropriate for a consumer seeking capital growth to be used as a core component within a portfolio where the consumer has a long-term investment timeframe, very high risk/return profile (ability to bear loss)

            I like these products, but there does not seem to be a lot of disclose of the risk and that it is a product suitable for high risk investors looking to hold for 8 years+, which is what the TMD says.

            • Cluster on 01/06/2023 - 13:10
              +4

              @happydude: Mmm, language like 'kick start my savings' are highly misleading. This isn't a savings account. As many people discovered in 2022, Spaceship could return absolutely abysmal results. Long term will it work out? Very likely. But short term? Nope.

              • happydude on 01/06/2023 - 13:12
                +2

                @Cluster: The fact they nuked the entire website would suggest that is where the problem lies.

    • Seraphin7 on 01/06/2023 - 11:42

      A TMD issue is not a liquidity issue. TMDs are compliance documents.

      This shouldn't directly impact the investments you hold, although I note Spaceship has bobbed up a few times with ASIC issues. Make your own choices.

  • Jimothy Wongingtons on 01/06/2023 - 10:01

    As someone about 2k in red, WHAT THE **** lmao

    • brendanm on 01/06/2023 - 14:27
      +1

      Between eth and this you are having a bad time 😔

      • Jimothy Wongingtons on 01/06/2023 - 14:55

        Thank you for following my adventure, but yes I am HEAPS in red across everything.

        Can’t even dca at a meaningful rate as I went all in HAHA

        • mbck on 01/06/2023 - 15:38
          +1

          They're all long term anyways. Just let it sizzle in the background. All the best

          • Jimothy Wongingtons on 01/06/2023 - 18:25

            @mbck: I guess it could have been worse I could have gone all in on luna like my mate did

  • dtc on 01/06/2023 - 10:12
    +3

    Its not a liquidity issue (AFAIK based on the statement) its a compliance issue; its that they dont have the right documents (the TMD) to be marketing to the people they are marketing to (ie they are marketing to people who are not properly included in their TMD). Thats something that should be fixed up easily; although ASIC generally work with companies to fix things up in the background so to actually issue an order suggests there is some tension for some reason. But, still, its a compliance issue with documentation and I cant see there is any reason why the TMD is unable to be updated as needed

    Super and other unit trust investments should all be held by a trust, so Spaceship do not have any access to that money and cant do anything with that money (other than manage it). So worst comes to worst, your fund gets rolled over to someone else (actually, worst case is they sell up the fund and pay you out the money and you get hit with CGT).

    • dust on 01/06/2023 - 10:26
      +5

      pay you out the money and you get hit with CGT

      Get hit with a carry forward capital loss.

  • payless69 on 01/06/2023 - 11:44

    Cheap staff
    quality control issues
    glad I joined the other rats

  • Top G on 01/06/2023 - 11:46
    +1

    Spaceship monetised the rocket emoji 🚀🚀🚀

  • SS625 on 03/06/2023 - 21:41

    I got super with them. Will my employer still be able to put money in ?

  • Matt88 on 05/06/2023 - 10:58

    I have closed my account - jumping the sinking ship

  • creeps_bay on 23/06/2023 - 22:35

    The spaceship looks shut, can anyone try logging in?
    Me and my friends accounts are locked.

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