Product issuers and distributors across many financial product categories including managed funds are subject to the ‘Design and Distribution Obligations’ (DDO) regime from the Australian Securities and Investments Commission (ASIC).
The essence of the DDO regime is to ensure financial products are designed for consumers’ requirements and are distributed to investors for whom they have been designed. The regime imposes a range of obligations on both product issuers and distributors.
TMDs are the key element of DDO. Product issuers are obliged to:
- Identify a target market of consumers, and design products suitable for that target market; and
- Monitor consumer outcomes and review products to ensure that consumers are receiving products that are likely to align to their likely objectives, financial situation and needs.
Issuers and distributors must take ‘reasonable steps’ to ensure those products reach consumers in that target market.
Platinum’s TMDs are available below.