Wealth Management – MDA

Wealth Management – Managed Discretionary Accounts (MDA)

Pulse Markets is an MDA provider offering its clients a range of multi-asset class model portfolios. These dynamic portfolios can provide capital protection and risk management.

An MDA account allows an investor to set a investment programme with objectives, such as income or growth. The portfolio is then actively managed on a daily basis by a investment manager who adjusts the holdings according to the clients investment programme.

The benefit to a client is being able to benefit from professional advisory backed by an investment committee whilst maintaining control of their own portfolio.

Pulse Markets is licensed to operate a Managed Discretionary Account (MDA) Service (AFS License No 220383).

As an MDA provider we must hold an AFS license authorisation to:

  1. deal by issuing a financial product in respect of:
  2. interests in managed investment schemes limited to MDA services; or
  3. miscellaneous financial investment products limited to MDA services;
  4. deal in all the financial products that are acquired with client portfolio assets under the MDA contract;
  5. have arrangements in place to provide personal advice to clients in relation to the MDA (Pulse does this through an external MDA adviser who enters into a direct contract with each MDA client to provide financial product advice about the investment program).

Regulatory Guide 179 issued by ASIC provides an outline of the key features of an MDA.

 

Feature Description
MDA provider An MDA provider is a person who enters into a contract with a client to provide an MDA: see RG 179.25.
Client contributions Clients give the MDA provider (or grant the MDA provider access to) contributions of money or money’s worth: see RG 179.27.
Trading discretion The MDA provider has the discretion to invest in financial products using client contributions without prior reference to the client for each transaction, subject to any limitation that may be agreed between the client and the MDA provider: see RG 179.29.
Client portfolio management The client’s portfolio assets are managed as a discrete portfolio belonging to that client: see RG 179.35.
Benefits for clients The client and the MDA provider intend that the MDA provider will use the client contributions to generate a financial return or other benefit for the client (even if this does not ultimately occur): see RG 179.39.
Retail clients Clients of the MDA include retail clients, as defined in s761G of the Corporations Act and Div 2 of Pt 7.1 of the Corporations Regulations

 

Pulse Markets utilises its MDA to implement Investment Models for clients.

 

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