Managed Discretionary Account (MDA) Operators

We have extensive experience, templates and networks that can assist you as an MDA operator or an MDA adviser, or both.  We also have templates that assist licensees operate MDAs under ASIC's No Action Letter.

According to ASIC an MDA service includes certain features:
  • A client giving their money or other assets to the MDA service operator, or access to their money or assets (the client’s contributions); 
  • The operator having discretion to buy and sell financial products using the client’s contributions; and 
  • The operator agreeing to manage the financial products acquired or derived from using the client’s contributions as a discrete portfolio belonging to the client. 
Some services currently marketed as separately managed accounts (SMAs), individually managed accounts (IMAs), investment advisory programs (IAPs), managed discretionary portfolio services (MDPSs) and discretionary portfolio accounts (DPAs), may fall within ASIC’s definition of MDA services.  If they do, then they are subject to AFSL obligation and Regulatory Guide 179, unless relief applies.

At Holley Nethercote we can assist in:
  • operating an MDA without the relevant AFSL authorisations under ASIC's No Action Letter;
  • developing MDA agreements;
  • advising on ASIC’s guidance for MDA operators and MDA advisers, such as Regulatory Guide 179 and the relevant Class Order 04/194
  • interpreting and explaining how proposed MDA policy changes may affect your organisation;
  • locating an MDA-competent Responsible Manager; and
  • advising in light of ASIC's recent MDA consultation - see CP200.
See the mindmap below on MDAs.

Contact us now if you require assistance.

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