Releases policy proposal paper
ASIC is inviting comment until May 22 on a policy proposal paper on managed discretionary account services.
The commission says it is reviewing its policy relating to the regulation of MDA services, to take into account a range of industry developments and recent legislative change, and expects to have a new policy in place before the end of the year.
ASIC’s policy paper sets out proposals for regulating MDA services offered to retail clients under the Corporations Act.
It defines a MDA service as one involving features including:
• a client giving their money or other assets to the MDA service operator, or access to their money or assets (the client’s contributions);
• the operator having discretions to buy and sell financial products using the client’s contributions; and
• the operator agreeing to manage the financial products acquired or derived from using the client’s contributions as a discrete portfolio belonging to the client.
ASIC says some services currently marketed as separately managed accounts, individually managed accounts, investment advisory programs, managed discretionary portfolio services and discretionary portfolio accounts, may fall within ASIC’s definition of MDA services.
If so, they will be regulated under the new policy.
The MDA policy proposal paper, and related class orders - [01/1598], [02/186], [02/1022], [03/233], [03/234] and [03/235] - are available from 1300 300 630 and from www.asic.gov.au.
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