The institute of Managed Account Professionals (IMAP) has welcomed the release by ASIC of a long foreshadowed revision of the MDA Class Order. “The new version of Regulatory Guide 179 is easy to read and a clear and pragmatic response that makes it more likely that advisers will take up MDA’s because of the flexibility they allow in the advice process” said Toby Potter, Chair of IMAP. there are winners and losers from the update to the MDA regulations
Winners:
Clients and Advisers: Better outcomes from the implementation of advice
Advice AFSLs: Much clearer regulation and potential for a significant service enhancement
Limited MDA advisers: New path to formalising their services either in their own business or with an MDA Provider - new name for MDA Operators
Major Platforms: Now they have 2 years to come up with Plan B for their current limited MDA Advisers
MDA Providers : No NTA
ASIC: Good piece of regulation which shows they can respond to an innovative and evolving financial service / product
Losers:
Limited MDA Advisers: The old world is gone
MDA Providers: A large number of individually small changes to regulation which will probably be significant in aggregate and all to be implemented in a 12 month period.
ASIC Analysts: Dozens of MDA applications to be processed in 24 months
Toby Potter
Chair, IMAP
For a copy of the full media release click here
Contact
Toby Potter, Chair, 0414 443 236 toby.potter@ilgroup.com.au
Jane McIlroy, National Marketing and Events Manager 0411420180 jane.mcilroy@imap.asn.au
Media
Chris Hocking 0418 603 694 chris@chstrategies.com.au