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.
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