ASIC cite various reasons for this including
- Waiting to see how FOFA will affect MDA operators
- The Coalition's deregulation agenda
- The Coalition's announcement of a moratorium on further financial services regulation,
ASIC do observe that they will be forced to renew or amend the regulations by 2016 if they are not to lapse for procedural reasons.
Whatever the reason, this effectively ends the immediate threat of NTA requirements for MDA operators for the time being and removes the prospect of a regulatory environment which resembles that for Responsible Entities for Managed Investment Schemes.
As is so often the case, market forces are overtaking regulation and the uptake of managed account services offered through various legal structures is accelerating.
Driven in part by the banning of conflicted remuneration and in part by the rapid development of technology by the platforms and administration providers, advisers are realising the substantial efficiencies as well as the revenue certainty that this type of service offers.
Any enquiries to
Toby Potter
Chairman
IMAP