Download article as PDFIn Australia, the Design and Distribution Obligations (DDO) come into effect on October 5 2021.
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. In particular:
- issuers must design financial products that are likely to be consistent with the likely objectives, financial situation and needs of the consumers for whom they are intended;
- issuers and distributors must take ‘reasonable steps’ that are reasonably likely to result in financial products reaching consumers in the target market defined by the issuer; and
- issuers must monitor consumer outcomes and review products to ensure that consumers are receiving products that are likely to be consistent with their likely objectives, financial situation and needs.
The design and distribution obligations require issuers and distributors to develop and maintain effective product governance arrangements across the life cycle of financial products. This will result in improved outcomes for consumers of these products.
Detailed information regarding the regulatory framework and obligations is available on the ASIC website below.
WealthO2's approach to the New Design and Distribution Obligations
uXchange
The Target Market Determination for WealthO2's wholesale managed fund offering, uXchange is available here.
Managed Funds on uXchange
WealthO2 will be integrating with leading Financial Services technology and data provider FE fundinfo for the provision of Target Market Determinations (TMDs) for all funds available on uXchange.
The TMDs are available to download from the WealthO2 Academy site here.
Managed Discretionary Account (MDA) Service provided by WealthO2
WealthO2 is in the process of finalising the Target Market Determination for WealthO2's managed discretionary account service. It will be made available on this page from 5 October 2021.
Managed Funds on uXchange
Want to know more?
For all queries relating to WealthO2's approach to Design and Distribution Obligations please email the WealthO2 team at product team at product@wealtho2.zendesk.com