On 1 October, ASIC stated that from that date managed discretionary account (MDA) providers must now have an AFSL, with an MDA-specific ‘dealing by issue’ licence authorisation and that MDA providers who do not have the required AFSL authorisations must cease providing MDAs until they have obtained those authorisations.

ASIC further states that ASIC will undertake reviews to check that MDA providers hold the relevant AFSL authorisations and will take action if unlicensed activity is identified.