ASIC’s proposed changes place MDAs squarely in the mainstream of tools available to advisers, aligned with FoFA and regulated consistently with managed investment schemes. IMAP fully supports the review to ensure the best levels of service to investors using MDAs.
The changes which these proposals bring to MDAs brings our sector into line with the wider changes which FoFA has brought to the advisory industry with greater focus on best interests tests, disclosure and opt in.
The effect on adviser’s business models of the proposed changes is likely to be to reinforce the position of MDAs as a core service allowing the cost effective delivery of advice and portfolio management to the middle market and above. Like all sectors of the advice industry, IMAP is concerned about limiting/reducing conflicts of interest which is an issue given the vertical integration by institutions.
To read complete IMAP recommendations to ASIC click here