R
Obligations/CWLTH

Comply with Design and Distribution Obligations (DDO)

Issuers and distributors of retail financial products must have a Target Market Determination (TMD) and distribute consistently with it.

criticalcurrentongoing

Who must comply

Issuers and distributors of retail financial products and credit products.

What triggers it

Issuing or distributing in-scope products.

When due

Continuous; TMDs reviewed periodically and on trigger events.

Evidence required

Documented TMD, distribution monitoring data, significant-dealings register, TMD review records.

Max penalty

Civil penalties to the maximum financial-services regime ($15.65M / 3× benefit / 10% turnover)

Summary

Part 7.8A of the Corporations Act requires issuers and distributors of retail financial products (including credit) to make a target market determination (TMD), distribute consistently with the TMD, report significant dealings inconsistent with it, and review TMDs periodically.

Enforced by

Source legislation

Industries

fintechbanking adiinsurance generalsuperannuation trusteescredit licensees

Topics

financial-servicesddotmd

Source: https://asic.gov.au/regulatory-resources/financial-services/product-design-and-distribution/. Rules Mate is not a law firm. Always verify against the live regulator source before acting.