toby.potter

Time Running Out for LMDA Users

Blog Post created by toby.potter on Nov 13, 2017

Those advisers who have been relying on the LMDA No Action letter to manage client portfolios on platforms have less than 12 months to make a decision about their replacement course of action. 

There are a number of courses of action which are available to them, but the optimal course for each adviser and advice group will depend on:

  • their resources, particularly in terms of the investment expertise available to the business
  • the technology available to manage multiple portfolios 
  • their appetite for compliance
  • what service they have trained their clients to expect over the time they have used the LMDA capability
  • their platform's capability

 

At IMAP we have run a strategic options workshop for a number of advisers which closed oversubscribed and which outlined the options and the pros and cons of each. 

Some of the options we analysed included:

  • Reverting to generating ROAs - this is the default option if no other is suitable
  • Adopting a technology solution for automating the ROA production process
  • Relying on the platform's menu of SMAs
  • Becoming an SMA manager through the platform's SMA program
  • Adding an MDA authorisation for their license and operating an MDA service
  • Becoming an adviser to an MDA program offered by a specialist
  • Only providing services to wholesale clients

 

More information on the benefits and implications of managed accounts is available through participating in IMAP events www.imap.asn.au 

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