ASIC Consults on Relief for Managed Discretionary Accounts

Detected March 23rd, 2026

Summary

The Australian Securities and Investments Commission (ASIC) is consulting on proposed changes to relief for managed discretionary account (MDA) services, which is due to expire on 1 October 2026. ASIC is seeking feedback on whether to extend the relief and if any substantive or simplification changes should be made to its policy settings.

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What changed

ASIC has opened a consultation period regarding ASIC Instrument 2016/968, which provides conditional relief from certain managed investment and disclosure provisions under the Corporations Act 2001 for managed discretionary account (MDA) providers and external MDA custodians. The current relief is set to expire on 1 October 2026. ASIC is seeking feedback on whether this relief should be extended and if any modifications, including substantive policy changes or simplifications, are warranted.

Regulated entities, specifically MDA providers and external MDA custodians, are encouraged to review the proposed changes and submit feedback by 5 pm (AEST) on Tuesday, 28 April 2026. The consultation document, CS 47, provides further details on the proposed remake of the relief. Failure to provide input may result in the expiration of current relief, potentially imposing new regulatory obligations on MDA providers.

What to do next

Submit feedback on proposed changes to ASIC Instrument 2016/968 by 28 April 2026
Review CS 47 for details on proposed relief modifications

Source document (simplified)

Newsroom

Print Share ASIC has opened consultation on proposed changes to ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968 (ASIC Instrument 2016/968), due to expire on 1 October 2026.

ASIC is seeking feedback on whether ASIC Instrument 2016/968 should:

be extended for a further period, and
if so, have any substantive and/or simplification changes made to the policy settings and terms of the relief set out in the Instrument. ASIC Instrument 2016/968 provides conditional relief from the managed investments provisions in Chapter 5C, and the product disclosure provisions in Chapter 6D and in Part 7.9 of the Corporations Act 2001.

Conditional relief would apply to managed discretionary account (MDA) providers and external MDA custodians: see Regulatory Guide 179 Managed discretionary accounts (RG 179).

ASIC Instrument 2016/968 also modifies the financial services disclosure provisions in Chapter 7.7 of the Corporations Act to provide conditional relief in relation to statements of advice and financial services guides for MDA services.

Submissions should be sent by 5 pm (AEST) on Tuesday, 28 April 2026 to IM.sunsettingconsultation@asic.gov.au.

Background

Under an MDA, a client’s portfolio assets are managed on an individual basis at the MDA provider's discretion.

Under the current financial services regulatory regime, MDA providers and external MDA custodians are subject to managed investment scheme provisions and certain disclosure requirements in the Corporations Act.

ASIC Instrument 2016/968 has provided relief from regulatory requirements to MDA providers, such as scheme registration requirements and various fundraising and disclosure requirements. This is because MDA providers have more limited functions than responsible entities of registered schemes.