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ARTICLE · 07 NOVEMBER 2016

Managed Discretionary Accounts: ASIC's interim response after lengthy consultation process

Clayton Utz
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MDA operators should plan the transition - licensees should review their FSGs, MDA contracts, policies and procedures.

AustraliaFinance and Banking
Matthew Daley
Matthew Daley
Vanessa Pallone
Vanessa Pallone
Welton Chan
Welton Chan
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MDA operators (and advisers) should start thinking about their plan for transitioning; in particular, licensees should start reviewing their FSGs, MDA contracts, policies and procedures.

On 29 September 2016, the Australian Securities and Investments Commission repealed Class Order 04/194 (which was due to expire on 1 October 2016) and replaced it with the ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968 and also released an updated Regulatory Guide 179 Managed Discretionary Accounts (RG 179).

Their release follows ASIC's consultation since March 2013 (Consultation Paper 200 Managed discretionary accounts: Update to RG 179) regarding proposed changes to the regulation of managed discretionary accounts (MDAs). ASIC's consultation aimed to ensure regulatory requirements that apply to MDAs are consistent with those that apply to similar financial products.

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