MDAs are typically offered by financial advisers or wealth management firms to high net worth individuals or institutional clients. They can offer a number of benefits, such as professional investment management, tailored investment strategies, and the ability to access a wider range of investment opportunities. However, MDAs also involve certain risks, such as the possibility that the investment manager may not perform as expected or that the investor's objectives may not be fully met.
MDAs are regulated in many jurisdictions to ensure that investors are adequately protected. In Australia, for example, MDAs are subject to the Managed Discretionary Account Services Regulatory Guide, which outlines the legal and compliance requirements for advisers and investment managers offering these services.