Released 16 April 2003. Comment closed 22 May 2003.

This policy proposal paper outlines our preliminary views on how we propose to regulate managed discretionary account (MDA) services provided to retail clients under the Corporations Act 2001 (Corporations Act). It covers the approach we propose to take in applying the licensing, managed investment, disclosure and conduct provisions to MDA services.

Our proposals cover:

• what we consider to be an MDA service (Section A);
• what conditional relief from the Corporations Act we are considering for MDA services (Section B); and
• when the new policy will apply (Section C).

We have also included two Schedules. The Schedules set out details that we do not consider essential to the understanding of the proposals but which may interest some readers:

• Schedule 1 compares MDA services with investor directed portfolio services (IDPS) and managed investment schemes structured as unit trusts; and
• Schedule 2 outlines our understanding of why a client might use an MDA service.

Download CP 44 (PDF 334 KB) | Read the information release