Separately Managed Accounts – A focus area for ASIC

ASIC's corporate plan for the coming year highlights managed accounts as an area of focus.

 ASIC will examine how licensees are managing compliance with their general obligations - which at their core require industry participants to act efficiently, honestly and fairly. ASIC will be examining what conflicts of interest may be present, and how these conflicts are addressed by advisers and licensees.

 ASIC has stated that funds under management have increased by an average of 24% each year since 2019. Much of that growth has been in SMAs, which form the largest category of the overall managed accounts sector – with the other main category for retail clients being MDAs.

 When regulators see shifts like this in market composition and dynamics, they are naturally interested. ASIC are interested in:

 - what is driving these changes
 - what the impacts are
 - how different incentives might influence these changes, and most importantly
 - what they mean for consumers.

Planning and scoping for this surveillance work is currently underway.