The Design and Distribution obligations (DDO) create a fundamental shift in how products are distributed to clients and members.
DDO requires product issuers to design products that are consistent with the likely objectives, financial situation and needs of the consumer for whom they are intended from 5 October 2021.
The Act requires that:
The consequences of not complying with these requirements are significant, with the legislation allowing for civil penalties up to $200,000 for individuals and $1 million for corporations, as well as potential criminal sentences.
How will DDO impact you?
For product issuers (Issuers), platforms (Issuers and Distributors) and AFSL licensees selling financial products to consumers (Distributors), DDO legislation requires that there be sharing of information and that all three participants monitor product dealings against the Target Market Determination (TMD) provided by the product issuer.
Product Issuers must:
Issuers and Distributors, such as investment platforms, must:
Whether you're a product issuer, platform provider, licensee or financial adviser—we can support you.
For any questions, please complete the form below, email us at firstname.lastname@example.org or speak to your contact at Iress.
DDO regulations will significantly change how financial services organisations distribute and market products.Learn more
Iress’ local and global capabilities combine to make Iress a natural DDO solution provider.Learn more
DDO obligations will create a fundamental shift in how products are distributed to clients and members.Learn more