In a keynote address, the Australian Securities & Investments Commission (ASIC) signalled it will examine compliance across the managed accounts sector as the product set grows in size and influence. The planned work will focus on governance frameworks, the management of conflicts of interest and consumer outcomes, particularly for retail clients. Managed accounts funds under management have increased by an average of 24% each year since 2019, based on Institute of Managed Account Professionals data. ASIC’s review will cover licensees and advisers who recommend or offer managed accounts to retail clients, testing compliance with general obligations to provide services efficiently, honestly and fairly, advisers’ best interests and appropriate advice obligations, and how conflicts are identified and managed across the value chain. The speech also referenced ASIC’s recent consultation on updating Regulatory Guide 181 on conflicts of interest for Australian Financial Services licensees, with final guidance intended to be published by the end of the year. Planning and scoping for the managed accounts surveillance work is underway. ASIC also pointed to ongoing enforcement activity, including adviser and responsible manager bans this year and active investigations into high-risk superannuation switching, with further court and enforcement actions anticipated.
Australian Securities & Investments Commission 2025-10-16
Australian Securities & Investments Commission to review managed accounts compliance with a focus on conflicts and consumer outcomes
The Australian Securities & Investments Commission (ASIC) plans to review compliance in the managed accounts sector, focusing on governance, conflict management, and consumer outcomes for retail clients. This follows a 24% annual growth in managed accounts since 2019. ASIC's review will assess licensees and advisers on their adherence to obligations and conflict management, alongside ongoing enforcement actions and updates to Regulatory Guide 181.