MDA services are operated under a specific Class Order (CO 04/194) originally issued in 2004. Using this Class Order nearly 200 AFSLs are authorised to provide MDA services.
Because Class Orders have a limited life the MDA Class Order is due to "sunset" or expire in October 2016 and a recent parliamentary release confirmed this sunsetting.
In the absence of ASIC action to extend or replace the Class Order all services operated under it would not longer have the protection it provides from meeting the requirements of the Corporations Act, such as an exemption from issuing a PDS.
This would obviously create a major problem for MDA Operators.
ASIC undertook a round of consultation in 2013 with a view to updating it in light of the way it is being applied in practice.
In light of the imminent expiry of the Class Order, ASIC have advised that they expect to issue a new Class Order and updated Regulatory Guide in late July or early August.
Institute of Managed Account Professionals
0414 443 236