SMA Standard – External Committee Minutes 26 Sep 2025

Overview

The SMA Standard Committee convened to review progress on the industry standardisation initiative and address stakeholder feedback following the April 2025 launch. The committee remains committed to creating a comprehensive framework that brings transparency and efficiency to the separately managed account sector.

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Attendees

Committee Attendees Present:

Other Attendees Present:

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Revisiting Background and Purpose

The SMA Standard was developed to address fundamental challenges in the managed account sector:

• Inconsistent Data: Wide variation in how SMA information is presented and reported
• Regulatory Compliance: Supporting adherence to Regulatory Guide 97 (RG97) fee disclosure requirements
• Operational Efficiency: Reducing duplicative data requests from multiple industry participants
• Market Transparency: Enabling meaningful comparison and benchmarking across products

The standard originated from insights gained through Product Rex, which hosts approximately 2,500 managed accounts and identified critical gaps in data consistency.

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Framework Discussed

Core Components:

1. Standardised Fee Disclosure

• Alignment with RG97 requirements per Standard on website
• Allows for consistent presentation across all platforms
• Key around transparent fee structures and addressing regulatory concerns

2. Universal Product Coding Established

• Unique SMA/PX code for each product now established
• The aim is to provide consistent identification across platforms
• It will facilitate accurate tracking and comparison
• Adoption plan with framework to be rolled out

3. Open Standard

• Industry participants can adopt the standard independently of the SMA Standard
• SMA Standard provides a central platform but not mandatory
• The platform has been designed for broad industry adoption

Technology Platform:

The SMA Standard operates through a dedicated entity (SMA Standard Pty Ltd) with purpose-built technology infrastructure that enables:

• Centralised data repository (for participants who choose to use it)
• Single point of data management for SMA providers and Responsible Entities
• Reduced administrative burden from multiple reporting requests
• Foundation for future performance analysis and benchmarking capabilities

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Industry Collaboration

Academic Partnership:

The committee is pleased to announce a significant academic collaboration with the University of New South Wales (UNSW). Through a competitive government fellowship program, UNSW will host a PhD researcher dedicated to studying applications of SMA data.

This partnership:

• Provides independent academic oversight and credibility
• Creates a secure, academically sound data repository
• Ensures data accessibility for industry research and analysis, with a core principle to protect commercial and IP as part of data privacy elements of the Standard.
• Supports evidence-based policy development

The PhD program, supervised by the UNSW finance and the computer science faculties alongside industry experts, will commence in early 2026.

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Stakeholder Feedback

Following the April 2025 launch, the committee has engaged extensively with industry participants including:

• Managed account providers
• Investment platforms and superannuation funds
• Industry associations and regulatory bodies

Key Themes Being Addressed:

1. Data Privacy and Protection

• Stakeholders seek assurance on proprietary information handling
• Particular focus on private label product data and commercial terms
• Committee developing comprehensive protocols addressing access controls and data segregation

2. Long-term Framework

• Industry participants requesting clarity on development and commercialisation roadmap
• Interest in understanding how the standard will evolve
• Questions about future capabilities and services

3. Governance and Independence

• Desire for transparent governance structure
• Interest in oversight mechanisms
• Academic partnership addressing many concerns

4. Practical Implementation

• Platforms and providers seeking implementation guidance
• Questions about integration requirements
• Interest in phased adoption pathways

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Development Roadmap

The committee has outlined a phased approach to standard development:

Phase 1: Fee Standardisation (Current)

• RG97 compliant fee presentation
• Universal product coding
• Basic data repository of all SMAs – ‘Off the Shelf’ and ‘Customised / Private Label’
• Include a dictionary definition of basic terms, such as participant definition
• Finalise phased adoption plan

Phase 2: Performance Data (Subject to Industry Feedback)

• Standardised performance reporting
• Consistent calculation methodologies
• Historical data capture
• Off the shelf versus customised portfolios
• Scope for permissioned access by researchers, fund rating agencies on customised portfolios, subject to SMA Manager and Responsible Entity permissions over their data.

Phase 3: Benchmarking and Analytics (Ongoing)

• Comparative analysis tools
• Industry benchmarks
• Other research capabilities

Each phase will be developed in consultation with industry participants, with the primary goal of creating value that exceeds implementation costs through operational efficiencies and enhanced transparency.

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Addressing Industry Concerns

1. Data Security and Privacy

The committee takes data protection seriously. Measures include:

• Established protocols from existing fund flow data management
• Clear data segregation and access controls
• Independent academic repository providing additional security layer
• Documented governance framework, in line with ISO27001 and SOC-2 requirements
• Independent technology monitoring and review, such as penetration testing

2. Commercial Sustainability for both the Standard and the Participants:

The standard is designed to be self-sustaining through demonstrable value creation:

• Efficiency savings from reduced duplicative reporting
• Streamlined platform integrations
• Enhanced research and analytics capabilities
• Reduced manual processing requirements
• Fee structures being contemplated include paid and/or freemium models.
• Guidance on commercial structure to be established to enable confidence around industry adoption.

3. Operational Continuity:

The committee is developing provisions to ensure data security and accessibility independent of any single organisation’s fortunes, including academic custodianship arrangements.

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Revisit Industry Benefits

For SMA Providers:

• Single data management point reducing administrative burden
• Consistent product presentation across platforms and software providers
• Participation in industry benchmarking
• Enhanced product visibility and comparison for its users

For Platforms and Permissioned Software Providers:

• Standardised data intake simplifying operations
• Reduced complexity in product administration
• Consistent client reporting
• Improved due diligence capabilities

For Advisers and Licensees:

• Easier product comparison and selection
• Transparent fee structures
• Reliable performance data
• Enhanced due diligence capabilities

For End Investors:

• Greater fee transparency
• Improved product disclosure
• Better informed investment decisions
• Enhanced market integrity

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Regulatory Alignment

The standard supports key regulatory priorities:

• ASIC and APRA focus on managed account oversight
• Compliance with fee disclosure requirements (RG97)
• Enhanced transparency and investor protection
• Operational governance improvements

The committee maintains dialogue with regulatory bodies to ensure the standard supports evolving policy objectives.

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Continued Call for Participation

The committee will actively engage with industry in a structured format. An engagement plan to be established:

• Managed account providers interested in standard adoption
• Platforms seeking to streamline SMA administration
• Industry associations supporting standardisation initiatives
• Academic researchers interested in managed account analysis
• Regulatory bodies with oversight responsibilities

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Communication and Support

In response to stakeholder feedback, the committee will shortly publish via the SMA Standard website and email opt in to industry participants and stakeholders:

• Comprehensive FAQ addressing recent common questions and concerns
• Engagement plan for industry participants
• Detailed governance framework
• Implementation guidance
• Technical specifications and integration requirements
• A draft commercial plan for SMA Standard Pty Ltd

Regular updates will be provided as the standard evolves and adoption progresses.

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Next Steps

The committee will:

• These minutes on the SMA Standard site – COMPLETED
• Publish FAQ and implementation guidance around Phase 1 (end of November)
• Formalise governance structure with academic partnership (end of November)
• Continue platform and provider engagement via engagement plan (ongoing)
• Progress PhD research program (commence January 2026)
• Maintain quarterly review and consultation process – dates of committee meetings and minutes will be published on the website, including key consultations across the industry.
• Monitor regulatory developments and industry feedback (ongoing)

— Meeting Ended —

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Contact

For inquiries regarding the SMA Standard please visit our contact page:

The SMA Standard Committee comprises industry experts, academic researchers, and technology specialists committed to bringing transparency, efficiency, and integrity to the managed account sector. The committee welcomes ongoing collaboration with all industry stakeholders.