On 5 October 2021, the Design and Distribution Obligations (DDO) went live across the Australian financial services industry. The DDO regime introduced targeted and principles-based obligations in relation to the design and sale of financial products. The DDOs require an issuer of financial products to consider the design of the relevant product and to determine an appropriate target market for the product (to be set out in a target market determination [TMD]).
ASIC believes that the industry has had sufficient time to come up to speed with the DDOs, with ASIC Deputy Chair, Karen Chester stating ‘Where firms are not doing the right thing and there is potential for consumer harm, ASIC can now take quick action to disrupt poor conduct and prevent harm’.
Six months on from the introduction of the DDO regime, ASIC has placed interim stop orders on three financial firms. The stop orders prevent these companies from issuing interests in the relevant management investment scheme or shares to retail clients.
Tune in to this webinar to hear Deloitte Partner, Audit & Assurance, Rosalyn Teskey and Senior Manager, Governance, Regulation & Conduct Advisory, Georgia Amery, explore ASIC’s recent regulatory action in relation to TMD deficiencies, how the industry has implemented DDO, and whether it is continuing to enhance and improve processes post-implementation. DD