Speaking at the IMAP MDA Responsible Manager Masterclass yesterday in Sydney, Toby Potter, IMAP Chair, said that there were 5 key issues that AFSLs need to master in the MDA space.
- There is currently no industry-wide understanding of what an MDA is and the different types of discretionary accounts that are available.
- Dealer groups are struggling to evaluate the potential value of MDA's for their business.
- How to implement into the business? Going through the stress of change management.
- Understanding the compliance issues - What are the advice requirements? What are the risk and compliance issues that need to be considered?
- Client communication – what do I say to my clients?
Led by Claire Wivell Plater of Gold Seal Risk Management Services, the MDA Masterclass showed Responsible Managers how to set up an MDA Service which best suited their organisation's skills and resources. "RM's need a detailed understanding of the overall responsibilities of an AFS licensee – to help them manage their obligations," she said.
"We are seeing increased interest in using MDA's in Australia as a main response to the challenges of FoFA. For most dealers, implementing an MDA Service is really only constrained by the education of AFSLs and their compliance staff in running systems that facilitate them," said Toby Potter.
"A move away from funds is not the issue, rather it is needing to have the product and systems that today's investors and SMSF trustees want. Advisers want to be able to deliver their services in an efficient, compliant way. And these new-style investors are suited to MDAs because they want control and they want to own their own assets, their own shares etc," said Mr Potter.
Future events which IMAP will be holding this quarter include a detailed presentation to subscribers of the latest Investment Trends Equities and SMA Research in Sydney and Melbourne.
For more information please contact:
Toby Potter
IMAP Chair
Toby.potter@imap.asn.au
0414 646 792
Claire Wivell Plater
Gold Seal Legal Pty Ltd
E claire.w@goldseal.net.au
02 - 8353 6604
Source: IMAP Media Release: 27 July 2011