AU PFS chief executive Steve Davis said Federation’s operational structure allows it to operate like a managed discretionary account (MDA) but does not require any of the additional compliance requirements for advisers that typically need to operate an MDA.
“We made the decision to put Federation on our preferred platform list primarily to take advantage of the structure of the platform, which operates as an IDPS-like managed investment scheme,” Mr Davis said.
“This structure allows us to build our model portfolios in the platform and our advisers can use them to better automate the investment management process for their clients.”
In addition, AU PFS said Federation will have additional efficiency benefits for advisers looking to manage their businesses in the post-FOFA environment.
“As a result of some of the additional administrative burden under the FOFA regime, we believe helping our advisers operate a more efficient practice is even more important,” Mr Davis said.
“Adding Federation was also a way to provide advisers with an alternative to the platforms owned by the major banks/institutions.
“This is becoming even more important in a post-FOFA world where advisers need to be even clearer in relation to meeting their obligations under their best interests duty,” he said.
