Australian private wealth advisers are switching AFSL providers at a faster rate
Thinking About Leaving Your Dealer Group? Here’s What Private Wealth Advisers Need to Know
Managed Accounts & MDA Solutions for Financial & Wealth Advisers
Automate your portfolio rebalancing and advice workflows, giving you more time for clients.
FEATURES AND BENEFITS
Reimagine portfolio management
and advice workflows.
Intelligent automation in the cloud
Transform your business, improve client outcomes and save time with our rapid rebalancing technology that works with your investment management systems to automate portfolio rebalancing and management.
Offering an MDA service is the definitive way to simplify portfolio management and deliver a scalable superior client experience. Leverage our pre-approved framework to bring this high-value service to your clients with confidence and efficiency.
White-labelled, automated advice
Gain end-to-end control and scaling of custom advice, workflows and reports (including ROAs), with your branding front and centre.
Portfolio personalisation and scalability
Suit the needs of both you and your different clients with personalised or model portfolios on a fit-for-purpose basis.
User-friendly investment dashboard
All your client and portfolio data in one place for powerful and intuitive search, research and client management.
Comprehensive compliance and security
Underpinned by enterprise-grade data security, privacy and compliance in every data packet and piece of code.
Supercharge your stack
Natively integrate with our ecosystem of complementary tools for orders, risk, compliance account opening and customer management. Our local development team are on hand to help create exactly what you need.
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Brokerage Services
Execution, clearing & settlements.
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Frequently Asked Questions
Common structures for managing client investment portfolios include:
-Separately Managed Accounts (SMAs): The client owns the underlying securities directly in their own name (via a custodian or HIN). A model portfolio manager makes investment decisions and trades are replicated across all clients invested in that model. The adviser typically doesn't have discretion — they select the model, and the model manager runs it. Good for tax transparency and client ownership of assets.
-Managed Discretionary Accounts (MDAs): The adviser (or licensee) holds discretion to trade on the client's behalf without needing to seek approval for each transaction. The client still owns the underlying assets, but the adviser can act quickly. Requires an MDA contract and specific AFSL authorisations (MDAs are regulated under RG 179). More flexible than an SMA because the adviser can customise the portfolio per client rather than just picking a model.
-Individually Managed Accounts (IMAs): Often used interchangeably with MDA in Australia, but technically refers to a bespoke, individually tailored portfolio managed on a discretionary basis — usually for high-net-worth clients where the portfolio is genuinely customised rather than model-based. Some platforms use IMA to distinguish fully bespoke mandates from model-based MDAs.
These structures differ mainly in who holds discretion and how the portfolio is legally held.
if an adviser wants to run an MDA, their AFSL (or their CAR agreement) needs to explicitly authorise it. That's part of why Openmarkets' CAR offering mentions MDA capability as a feature — not all licensees extend that authorisation to their CARs.
An MDA (Managed Discretionary Account) is an arrangement where an adviser is legally authorised to buy and sell investments on a client's behalf without needing the client's approval for each transaction.
The client signs an MDA contract upfront that sets out the investment mandate — objectives, risk tolerance, asset classes, constraints. Within that mandate, the adviser can then act immediately when they see an opportunity or need to rebalance, without calling the client first. Without MDA authority, an adviser technically needs to get client consent before each trade (or at least before implementing advice).
Most large dealer groups and licensees hold MDA authorisation at the AFSL level, but not all of them pass that authorisation down to their CARs. So if you're a CAR wanting to run truly discretionary portfolios for clients, you need a licensee — like Openmarkets — that explicitly grants you MDA capability under their AFSL.
For advisers:
Speed and efficiency. You can act immediately when markets move, an opportunity arises, or a rebalance is needed. No chasing clients for approvals, no delays, no missed trades.
Scalable portfolio management. You can manage multiple client portfolios consistently without needing individual sign-off each time. This is what lets a smaller practice punch above its weight — you can run 50 portfolios with the discipline of a fund manager.
Professionalism and positioning. MDA is structurally similar to how institutional and fund managers operate. It signals to clients that you're a serious, active portfolio manager — not just an advice dispenser. This supports a premium fee positioning.
Stickier client relationships. When you're actively managing a portfolio under a mandate, the relationship is deeper than transactional advice. Clients are less likely to leave because you're embedded in their financial life in a meaningful way.
Cleaner compliance trail. Every trade is made within a documented mandate. You have a clear record of why you had authority to act, and your reporting demonstrates stewardship. Paradoxically, having more discretion can mean a cleaner compliance story than ad-hoc advice.
For clients:
Better execution. Their portfolio gets managed in real time, not when they happen to pick up the phone. In volatile markets this can meaningfully affect outcomes.
Consistency. The mandate sets out the rules upfront. Clients know what they're getting — their portfolio is managed to a documented objective, not subject to ad-hoc decisions.
Transparency. MDA requires regular reporting — clients receive statements showing exactly what was traded, why, and how the portfolio is performing. Often more rigorous than standard advice relationships.
Clarity of the relationship. The MDA contract sets out the mandate, fees, and boundaries clearly. Clients know what they've delegated and what the adviser's obligations are.
The bottom line:
MDA essentially lets an adviser operate with extra speed, discipline, and accountability — while clients retain direct ownership of their assets (unlike a managed fund where they own units). It's the structure that separates advisers who manage portfolios from those who give advice about portfolios.
Powering the next generation of financial technology with enterprise-grade APIs, real-time data, and lightning-fast execution.
Contact
L15, 388 George St, Sydney, NSW 2000, Australia
Openmarkets Australia Limited (ABN 38 090 472 012, AFSL 246705) is a Market Participant of ASX, Cboe Australia and NSX, and an ASX Clear and Settlement Participant.
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