Introduction
Adviser Ratings Group is leading a major industry initiative to standardise Separately Managed Account (SMA) data, ensuring greater efficiency, clarity, and regulatory alignment across the financial services sector.
Over the past year, Adviser Ratings Group has worked closely with SMA managers and other industry stakeholders to develop a new SMA standard aimed at addressing inconsistencies in fee classifications and data formats. The draft standard has already been shared with key industry participants, and collaboration efforts are underway to establish a central repository with two-way API access or an automated ingestion process.
Driving Industry Efficiency
The standard was initially developed to streamline operations within ProductRex, which currently tracks approximately 800 private-label SMAs and 800 off-the-shelf SMAs. With more than 4,500 users—including nearly 7,000 advisers—ProductRex has captured an estimated 70% of all SMAs, highlighting the need for greater data consistency. The new standard will enable platforms and SMA managers to benefit from enhanced data integration, reducing inefficiencies and improving compliance with regulatory requirements.
To further support industry adoption, a new Monitor Module is currently in beta testing. This module is designed to facilitate standardised data consumption with built-in guardrails to ensure accuracy and consistency.
Key Industry Benefits
To promote adoption, the initiative introduces a standardised “stamp” for each SMA action, ensuring compliance before data is ingested by platforms. By establishing a uniform process for SMA data management, the industry can improve regulatory alignment, enhance transparency, and streamline workflows.
Phased Implementation Timeline
- Phase 1 (March 2025): Launch of the SMA repository, standardising mandatory fees in accordance with RG 97, with integration available via API or automated scripts.
- Phase 2 (March–December 2025): Refinement of platform fee structures.
- Phase 3 (October 2025 Onward): Expansion into performance reporting, addressing RG 779 requirements with shadow reporting of gross fees.
Independent Oversight
To ensure broad industry participation and governance, an independent executive committee has been established. The committee currently includes:
- Professor Jerry Parwada – Professor of Finance at UNSW Business School, Chair of the Adviser Ratings Licensee Rating System (AQS™), and independent NED of a central bank.
- Dr. Michelle Cull – Associate Professor at Western Sydney University, financial planning researcher, and co-developer of the WalletSmart App.
- Tom Reddacliff – CEO of Encore Advisory Group, with over 24 years of experience in financial services strategy and governance.
Formally Launching Q1 2025
The SMA standard will be formally launched in Q1 2025, with a dedicated website—www.smastandard.com.au—providing access to the framework, industry updates, and implementation resources.
For further information, please contact us here.
