The Institute of Managed Account Professionals (IMAP) has announced the establishment of an industry working group to develop data standards for the exchange of managed accounts model data.
The firm said platforms and other managed account providers have developed proprietary approaches to providing model data and managers have reported finding it difficult to meet the various data requirements, adding these challenges would increase as the number of managed account services increased.
IMAP chair, Toby Potter said: “With the rapid growth of managed accounts in the financial services industry, model data is being electronically distributed between all participants”.
“However, no standard is in place for the definition or formats for this data. This leads to bespoke developments, greater risk of error and higher cost of integration.”
Other industries had already developed standard data transfer formats, with planning software being a market example of extensive adoption of a single industry-wide standard, he added.
“Since managed accounts are still a relatively new market, this seems the right time to establish a common standard,” Potter said.
“We are not trying to create a binding standard, but it will provide a useful incentive to prevent further proliferation in proprietary specifications.”
IMAP said it was convening a representative working group with organisations such as Financial Express, and others including:
- AMP
- Bennelong Funds
- BT
- Colonial First State
- Copia and Ralton
- Elston
- IOOF
- IRESS
- Lonsec
- Macquarie
- Morningstar
- Netwealth
- Praemium
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