As managed accounts continue to develop different features, James Louw (DASH) provides some key insights on the evolving landscape of SMAs, MDAs and regulation, and what this means for the future of managed accounts.
Having been around since the 1970s, managed accounts are now a well-established structure in the financial services landscape. However, it has only been about the last 10 years that adviser adoption of managed accounts has accelerated, as increasingly more advice firms recognise the value — governance, efficiency, scale, and client experience consistency — in the operating model of managed accounts.
Today, James Louw — Chief Growth Officer at DASH — believes the managed accounts sector is at an inflection point, where regulation, governance and oversight are not only placing the end investor at the forefront of investment outcomes, but are also shaping platform behaviour and product design. He says regulation will influence the future direction of managed accounts.
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Speaking on the topic of ‘Choosing the right structure: SMA vs MDA’ at the 2026 IMAP Advice in Action Conference, James says governance and oversight, along with trustee obligations and defensibility in the decision-making process, carry more weight in today’s regulatory environment
By Jayson Forrest
James Louw
Chief Growth Officer
DASH Advisory
In a broader industry shift, regulation is putting the end investor at the centre of the decision-making process. So, the industry is being reminded not to lose sight of client outcomes, which means evidence-based performance matters more than ever before for investors
Changing platform behaviour
According to James, just as regulation has shaped the way managed accounts are designed, regulation is now influencing platform behaviour — more so than product design.
He identifies three key trends where regulation is changing platform behaviour in relation to managed accounts:
1. Platforms are becoming more selective in what they do.
This includes in terms of accountability to licensees, responsible entities, and with reduced fees. On the back of that, platforms are also being far more selective on what stays on platform and what doesn’t. This includes being more discerning with their managed accounts offering, which includes greater scrutiny of bespoke SMAs, adviser-designed portfolios, and frameworks that are less-established.
“The barrier to entry and the regulatory hurdles platforms must now jump are much higher,” says James. “And if you already have a portfolio, the ability for that portfolio to stay on platform is also going to become much higher.”
James says because of this increased regulatory focus on the end investor, the emphasis has switched from whether you can administer a portfolio on platform, to whether you can defend it on platform from a regulatory perspective.
2. The institutionalisation of investment management
Platforms are increasingly equipping advisers with enterprise-grade infrastructure, rigorous due diligence processes, and access to private markets typically reserved for institutional funds. By doing so, platforms are enhancing operational scale and providing high-net-worth clients with access to unlisted investments.
3. Performance matters more than ever
Regulation is also affecting platform behaviour by placing a greater emphasis on platforms in relation to monitoring, governance, and evidence-based performance of client outcomes.
“These key trends certainly impact how you operate your managed accounts structure moving forward,” says James. “In a broader industry shift, regulation is putting the end investor at the centre of the decision-making process. So, the industry is being reminded not to lose sight of client outcomes, which means evidence-based performance matters more than ever before for investors.”
Governed personalisation effectively means you’ve got institutional-grade governance around your managed accounts structure. At the same time, you’ve got the ability and flexibility to personalise the structure to the needs and circumstances of the investor.”
The successful advice business of the future will have very clear segmentation of their clients, strong governance, and use an operating model that is adaptable, so they’re able to deal with the challenges thrown at them by platforms and regulators
The future: Governed personalisation
James says it’s important to remember that in terms of managed account vehicles — SMA or MDA — one is not better than the other. The choice of vehicle depends on the specific needs of clients or a client segment, to enable them to achieve their goals and aspirations.
James believes this is an important consideration when looking at the future of managed accounts. As regulation increasingly drives advice to fit each client’s unique goals, he believes the future of the structure lies somewhere in the middle between an SMA and MDA. The term DASH uses to describe this is the ‘governed personalisation’ of managed accounts.
According to DASH, ‘governed personalisation’ refers to the ability to tailor investment portfolios, client reporting, and workflows to individual client needs, while strictly operating within compliance, regulatory frameworks, and risk profiles. It allows advisers to scale portfolio customisation safely without compromising fiduciary and statutory obligations.
“Governed personalisation effectively means you’ve got institutional-grade governance around your managed accounts structure. At the same time, you’ve got the ability and flexibility to personalise the structure to the needs and circumstances of the investor.”
In its purest form, James says the MDA structure is ‘governed personalisation’ — one governed portfolio to a client’s own goals, and not a suite of SMAs stretched across a practice.
According to James, ‘governed personalisation’ offers the following value for clients:
- Portfolios built around each client’s unique goals, and not a model average.
- Existing holdings, tax position, ethics and legacy assets can all be accommodated for the investor.
- The suitability of the investment program is reviewed at least every 13 months.
- The solution adapts to the client, not the client to the model.
And in terms of the value of ‘governed personalisation’ for an advice business, it offers the following advantages:
- Institutional governance across one common investment architecture.
- Discretion exercised within clearly defined and agreed parameters.
- Efficiency, consistency, and adviser capacity preserved at scale.
- One repeatable proposition — less key-person risk, and enhanced value to the business.
However, James acknowledges that with ‘governed personalisation’, more flexibility requires greater responsibility, which means stronger governance is absolutely critical in the evolving managed accounts environment.
“We believe the future of managed accounts isn’t standardisation or personalisation. It’s governed personalisation,” says James. “We see advice businesses closely analysing their client segments, and while an MDA in its purest form provides ‘governed personalisation’, there will absolutely be client segments that won’t want or need personalisation. So, it’s about making sure you work through your clients to ensure the solution you provide aligns with their needs.
“We see a future where ‘governed personalisation’ means the end investor uses a combination of both SMAs and MDAs, which are simply vehicles advisers can use to help clients achieve their needs and goals.”
Lead with the practice, not the platform. To thrive in the years ahead, you need to make a decision about the whole business — people, capacity, governance, and enterprise value — not a product. This means using or designing a model that empowers advice practice success
Thrive and not just survive
DASH believes ‘governed personalisation’ will be the next phase in the evolutionary journey of managed accounts. And while shifts in regulation and technology, like AI, cause advice businesses to question how they operate, James says this disruption can also create opportunities — for advisers, clients, and businesses.
Against this background of regulatory and evolutionary change, James believes there are five priorities businesses need to consider in order to thrive with managed accounts over the coming years. These are:
1. Review your managed accounts strategy: Does today’s structure/vehicle support future growth and rising governance expectations?
2. Assess concentration risk: Is there a reliance on specific platforms or structures? Consider diversifying your capability.
3. Strengthen governance: This includes investment committee frameworks, due diligence, monitoring, and documentation.
4. Educate advisers: Build internal capability to ensure adviser understanding of MDAs remains consistent within the business.
5. Think strategically, not tactically: Managed accounts are not a product choice, but an operating model decision that supports the next stage in the growth of a business.
“The successful advice business of the future will have very clear segmentation of their clients, strong governance, and use an operating model that is adaptable, so they’re able to deal with the challenges thrown at them by platforms and regulators,” says James.
“So, lead with the practice, not the platform. To thrive in the years ahead, you need to make a decision about the whole business — people, capacity, governance, and enterprise value — not a product. This means using or designing a model that empowers advice practice success.”
As we look to the next 10 years and beyond, those winning businesses will be the ones that build flexible, well-governed operating models designed both around their clients and their business ambitions
Choosing the right operating model
But how does a business ensure the managed accounts model it settles on is right for the business?
James says it’s essential that businesses look at operating models through a diagnostic lens, ensuring the model is suitable for the business, and then undertake a staged path in the implementation of the model within the business.
As part of the diagnostic process, businesses should consider the following questions:
- Does the structure support future growth and rising governance expectations?
- Is the operating model flexible, and which client cohorts genuinely need customisation?
- Is portfolio construction a core internal competency or a specialist partner’s role?
- Does the structure improve client outcomes while creating capacity?
- Does the structure build long-term enterprise value and reduce key-person dependency?
Once satisfied with your diagnostic check, James suggests businesses use the following roadmap when implementing a suitable managed accounts operating model.
1. Assess the existing model
This includes portfolio construction, client segmentation, platform arrangements, and governance.
2. Identify suitable cohorts
This includes high-net-wealth clients, multi-generational families, SMSFs, and clients needing portfolio customisation.
3. Establish governance
This includes investment programs, monitoring, rebalancing, manager oversight, and reviews.
4. Partner with specialists
Use advice-aware partners who understand regulation, governance and integration.
“As we look to the next 10 years and beyond, those winning businesses will be the ones that build flexible, well-governed operating models designed both around their clients and their business ambitions,” says James.
About
James Louw is Chief Growth Officer at DASH.
He spoke on the topic ‘Choosing the right structure (SMA vs MDA)’ at the 2026 IMAP Advice in Action Conference.