The Design and Distribution Obligations (DDO) regime introduces targeted and principles-based design and distribution obligations in relation to financial products. The obligations require issuers and distributors to ensure products are targeted at the right people (ie the target market).
On 5 October 2021, the Design and Distribution Obligations (DDO) will come into effect for all issuers and distributors of financial products that are covered by DDO.
Target Market Determinations
A significant dealing report is intended to capture material or significant distribution of a product outside of its TMD.
Whether or not a dealing is significant will depend on a variety of circumstances, including the scale of distribution outside the target market and the risk of harm to those consumers from such distribution.
Each distributor will need to make an individual assessment in the circumstances of each case to determine when a dealing (or dealings) outside of a TMD is significant and needs to be reported.
A distributor must report any significant dealings to us within 10 business days of them becoming aware of the dealing.
Distributors will need to provide us with the following details for any significant dealing that is identified:
- the TMD the significant dealing relates to;
- the date or the date range which the dealing occurred;
- a description of the dealing;
- an explanation of why the dealing is considered significant;
- an explanation of why the dealing is considered to be inconsistent with the TMD;
- how the dealing was identified (eg, through monitoring, complaints etc); and
- what steps have been or will be taken in relation to the significant dealing.
If you would like to report a significant dealing please email us at firstname.lastname@example.org.
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