What are ASIC’s design and distribution obligations
The 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.
New rules, among other outcomes, dramatically alter traditional information flows between product issuers, advisers and end consumers, and expose issuers to unprecedented levels of scrutiny and potentially even liability.
In Regulatory Guide 274 Product design and distribution obligations (RG 274), ASIC sets out the steps product issuers must follow in order to satisfy the target market determination (TMD) requirements.
So, what entities and products are most affected, and how?
Target Market Determination
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.
About our course
Our online course Design and Distribution briefly traces the journey from conception to DDO & PIP implementation, we explore what areas are being targeted first and what the new measures might mean for your organisation.
What you will learn
- The global and domestic themes that drove the creation of DDO
- Key milestones in the development of DDO and PIP in Australia
- What the principles of DDO are
- How ASIC intends to exercise its product intervention powers in general terms and in the product segments where it has already taken action
- How financial services will be impacted by design and distribution obligations and product intervention powers
Recognition of Prior Learning
You will be awarded a Certificate of Completion. It will be available online for you to download and print immediately.
RG146 CPD Area: Regulation