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What is a Managed Discretionary Account (MDA) and how does it work in Wealth Accelerator?

Super Accelerator and Wealth Accelerator can be used in conjunction with a managed discretionary account (‘MDA’) service and Netwealth have arrangements with certain providers of MDA services (‘MDA Operators’).

If you have entered into a contract with an MDA Operator under which that MDA Operator provides you with an MDA service, investment transactions for the MDA service can be processed through your Super Accelerator account.  

An MDA Operator:

  • must hold an AFSL that authorises them to provide MDA services;
  • must under its contract with you provide an investment program and is responsible for implementing and reviewing that program for you; and
  • is responsible to you for all MDA services, but where you use Super Accelerator the MDA Operator is not responsible to you for custodial or depository services for MDA client portfolios.

If you have an MDA Operator providing you with an MDA service, you may agree to pay a fee to the MDA Operator for that service. In this case Netwealth may accept an instruction from you to deduct a portfolio management fee from your Super Accelerator account and pay it to the MDA Operator. The payment of a portfolio management fee is subject to Netwealth entering into an arrangement with the MDA Operator to facilitate the payment of the fee.

To allow the MDA services described above to be provided using your Super Accelerator account, the MDA Operator or its representative must be appointed as a Nominated Financial Adviser and Adviser Representative for your account and you must not opt out of appointing your Nominated Financial Adviser as your Adviser Representative. If the MDA Operator or its representative ceases to be a Nominated Financial Adviser and Adviser Representative for your account, Netwealth no longer accept
investment instructions from the MDA Operator in relation to your account and Netwealth will cease paying portfolio management fees to the MDA Operator.

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