IMAP has announced the establishment of an ‘industry working group’ to develop data standards for the exchange of managed account model data.
In making the announcement, IMAP chair Toby Potter said with the rapid growth of managed accounts in the financial services industry, model data was being electronically distributed between all participants. However, he added that no standard was in place for the definition or formats for this data, which led to bespoke development, greater risk of error and higher cost of integration.
Potter said platforms and other managed account providers had developed proprietary approaches to the provision of model data, with managers reporting they found it increasingly difficult to meet these varying data requirements.
“These challenges will only increase as the number of managed account services increases,” Potter said.
“Other industries have already developed standard data transfer formats, with planning software being an adjacent market example of widespread adoption of a single industry wide standard. So, since managed accounts are still a relatively new market, this seems the right time to establish a common standard.
“We are not trying to create a binding standard, but it will provide a useful incentive to prevent further proliferation in proprietary specifications.”
As part of its initiative to develop appropriate data standards for managed accounts, IMAP has convened a representative working group to deliver efficiencies to the industry. Participating organisations include: AMP, Bennelong Funds, BT, Colonial First State, Copia and Ralton, Elston, Financial Express, IOOF, IRESS, Lonsec, Macquarie, Morningstar, netwealth and Praemium.