Independent advisers ditch platforms for MDAs
The tide is turning against institutionally-backed wrap platforms, with growing numbers of independent advisers opting to use managed discretionary accounts (MDAs) instead, Managed Accounts Holding Limited (MGP) believes.
MGP chief executive, David Heather said independent advisers were attracted to the structure of MDAs and the control they provide.
"The MDA compliance framework, our non-conflicted open architecture business model, and the ability and appetite for firms to control their own portfolio management outcomes is resonating well with independent financial advisers," he said.
Heather said 10 independent groups have committed to launching MDA services backed by MGP in the coming months, following on from three Australian Fianncial Services Licensees (AFSLs), representing $400 million in funds under management, that launched MDAs in the last quarter.
AUTHOR
Nicholas O'Donoghue
Recommended for you
With Insignia shares up 32 per cent in the past month and the firm enacting a five-year growth plan, Morningstar believes the two recent acquisition bids from private equity firms demonstrate the company is undervalued.
As financial advisers enter the new year, Assured Support shares eight strategies to help advice businesses thrive through focused and consistent planning.
Insignia Financial has received a takeover bid from a second US firm, topping Bain Capital’s offer with a bid of $4.30 per share.
As the year comes to an end, Money Management takes a look at the biggest announcements that shocked the financial advice industry in 2024.
