ASIC has issued a new legislative instrument to continue regulatory relief for managed discretionary account (MDA) providers and external MDA custodians. ASIC has also updated its related regulatory guidance.
ASIC Corporations (Managed Discretionary Account Services) Instrument 2026/720 (ASIC Instrument 2026/720) replaces ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968 (ASIC Instrument 2016/968).
ASIC Instrument 2026/720 does not substantively change the terms of the relief for MDAs. Minor adjustments have been made to reflect related regulatory developments and evolving industry practice, including:
- moving some financial services guide (FSG) content requirements to into the investment program;
- amending the timeframe for notifying ASIC of non-compliance from 10 days to 30 days, along with changing the information required from full details of the non-compliance to its material details; and
- phasing out quarterly reporting with electronic access to account information to better reflect industry practice, giving investors timely access to their investment details.
ASIC undertook a streamlined consultation process on the proposed remake of the relief in CS 47 Proposed remake of relief for managed discretionary account services in April 2026. The submissions broadly supported the continuation of the MDA relief.
ASIC has also updated its guidance in Regulatory Guide 179 Managed discretionary accounts (RG 179) to reflect the new instrument and adjustments made.
Background
MDAs are a service where a client’s portfolio assets are managed on an individual basis at the MDA service provider’s discretion.
Under the current financial services regulatory regime, MDA providers and external MDA custodians are subject to managed investment scheme provisions and certain disclosure requirements in the Corporations Act.
ASIC Instrument 2016/968 provided relief from regulatory requirements to MDA providers, such as scheme registration requirements and various fundraising and disclosure requirements. This is because MDA providers have more limited functions than responsible entities of registered schemes. ASIC Instrument 2016/968 was due to expire on 1 October 2026.
Related Links
- ASIC consults on relief for managed discretionary account services
- CS 47 Proposed remake of relief for managed discretionary account services
- ASIC Corporations (Managed Discretionary Account Services) Instrument 2026/720
- RG 179 Managed discretionary accounts
