Proposed Updates to Regulatory Guide 274 – Product design and distribution obligations (RG 274)

On 28 August 2024, AFIA responded to the proposed updates by the Australian Securities and Investments Commission (ASIC) to Regulatory Guide 274 – Product design and distribution obligations (RG 274). AFIA supports the core objective within the proposed update, wherein ASIC seeks to clarify that in the development of a Target Market Determination (TMD) for a financial product, and specifically for the TMD to be deemed appropriate as per s994B(8) of the Corporations Act 20012, an objective test should be undertaken.

View the pdf here.