DDO Essentials

What are DDO requirements?

ASIC’s design and distribution obligations (DDO) are designed to encourage organisations to take a customer-centric approach to the way they design and distribute products by ensuring there’s a clear target market for each product.

Organisations always want to make products seem appealing to as many customers as possible. But, when it comes to financial products, it’s important that customers are not misled by the product is sold, and tempted to take up products that are not right for them.

Regulatory compliance and conduct learning

Our General Corporate Compliance modules are designed for enterprise wide training, offering bite-sized modules (30-45 minutes), the perfect study duration, balancing convenience with learning. Contextualised specifically for Financial Services.

About our DDO Essentials module

In this module, you’ll learn the fundamental principles of the design and distribution obligations and the power ASIC has to enforce DDO.

The other relevant legislation in respect to DDOs are as follows:

Program Content

  • What are design and distribution obligations (DDO)?
  • ASIC’s supervision and enforcement of DDO
  • Relationship between APRA’s MO obligations and ASIC’s DDO (Optional)

Learning Outcomes

  • Explain the fundamental principles of the design and distribution obligations (DDO).
  • Outline the powers ASIC has to enforce DDO.
  • Identify potential impacts of DDO and product intervention powers on your organisation.

What you will learn

Who is this course for?

  • Any financial representatives who must be trained to adhere to financial services-specific regulation and industry codes with respect to conduct.

Units of Competency

Pre-requisite

Recognition of Prior Learning

Certification

Explore our General Compliance Training

A simple enterprise-wide solution for a complex world of regulation.

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Frequently Asked Questions

ASIC's RG 274 design and distribution obligations is for issuers and distributors of financial products that must comply with the design and distribution obligations in Pt 7.8A of the Corporations Act. It explains ASIC's interpretation of the design and distribution obligations, expectations for compliance, and its general approach to administering the obligations. RG274 design and distribution obligations are intended to help consumers obtain appropriate financial products by requiring issuers and distributors to have a consumer-centric approach to the design and distribution of products.  

The target market, distribution conditions, and information related to review and monitoring must be set out in a document called a ‘target market determination’ (TMD). The TMD is a written document prepared and made available before engaging in ‘retail product distribution conduct’. (RG 274.10) Under the design and distribution obligations, a product issuer must identify an appropriate target market for their product. This includes assessing whether the product, including its ‘key attributes’, is consistent with the needs, objectives and financial situation of a particular class of customer. If an appropriate target market cannot be identified for a product, an issuer will not be able to offer the product.

Our general corporate compliance training contains a suite of engaging online modules designed to make employees aware of their responsibilities and feel empowered to uphold the conduct and regulatory standards applicable to their organisation. A general compliance module – refers to a corporate e-learning course designed to meet specified organisational, legislative and/or conduct requirements.  

The team at FEP understands that effective compliance training is not just about delivering regulatory content; it's about creating learning that is engaging, relevant and impactful for organisations and their employees. We design training experiences that resonate with individuals, ensuring they gain practical knowledge and skills that are immediately applicable to their roles.
What is RG206?2023-04-21T07:53:53+10:00

Regulatory Guide 206 Credit licensing: Competence and training (RG 206)

Credit licensees must comply with the organisational competence obligation in s47(1)(f) of the National Consumer Credit protection Act 2009 (National Credit Act). Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out the minimum expectations for demonstrating organisational competence.

What you need to do to comply will depend on the nature, scale and complexity of your business. However, Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out our minimum expectations for demonstrating organisational competence.

You must also ensure that your representatives are adequately trained and competent to engage in the credit activities authorised by your licence: s47(1)(g).

ASIC generally expects you to determine what is appropriate initial and ongoing training for your representatives and to embed this in your recruitment and training systems.

Updated annually, our CPD is designed to enable Responsible Managers and Representatives of Australian Credit Licensees to meet their mandatory RG206 continuing training requirement. Our CPD that is structured, properly assessed and recorded.

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