ASIC has approved the move of security trading and reporting system Hub24 Investment Service from a managed discretionary account service to an investor directed portfolio service (IDPS).
"Such a move positively positions the service in an optimal legal structure as well as aligning the business to the recently announced Future of Financial Advice reforms," the company said.
"We are pleased to announce this approval for the variation to the AFSL [Australian Financial Services Licence], which enables Hub24 to provide an optimal investment service for the client by ensuring a higher level of disclosure and one that carries less regulatory risk," Hub24 chief executive Darren Pettiona said.
The benefits of operating under an IDPS structure include an improved disclosure regime, allowing clients to retain discretion on how their investments are managed, established business processes with advisers groups who are familiar with IDPS platforms, while not imposing the requirement of an investment program, thus removing the obligation of annual reviews, Pettiona said.
Hub24 is fully owned by publicly listed company Investorfirst.
