SMA
IMA
Structure
Sold as a Managed Investment Scheme (creates a similar sales process to wraps and unit trusts) as per Chapter 5C of the Corporations Act 2001.
Sold as a discretionary service, normally using a MDA license. The selling process differs in that a separate individual MDA contract needs to be set up with additional information such as the outline of the investment program.
Pooling
SMAs allow for pooling of assets. This opens access to wholesale transaction rates to facilitate lower costs.
Pooling is not allowed (under RG 179.22) to enable an investment to be made or to be made on more favourable terms.
Ownership
Either directly, or via custodian and may be pooled for efficiency
Either directly, or via custodian but may not be pooled
Customisable
May be customised according to client requirements for tax and other preferences such as locking existing holdings
Adviser Review
No impact on SOA requirements from SMA establishment.
Following the establishment of an IMA, RG 179 requires a review of the investment program every 12 months