Your Design & Distribution Obligations
With less than 4 weeks until the new DDO obligations come into effect on Tuesday 5 October 2021, it is important to understand how this will impact you in your day to day advice activities.
The Advice & Governance Team held a webinar recently which walked through some of the requirements of DDO and what the Adviser obligations entail. If you were unable to attend this webinar, please view the recording below. We encourage you to join the Design & Distribution Obligations – webinar series using the attached link HERE with the next session due for Tuesday 14th September 2021.
In the new world of DDO, distributors (ie Advisers and Madison) must take reasonable steps that will, or are reasonably likely to, result in distribution of a financial product being consistent with the Target Market Determination (TMD) for that product.
Almost all financial products being recommended by our advice community will have a TMD.
The DDO regime excludes personal advice and associated conduct from most of the new distribution obligations (due to your best interest obligations). However, where DDO impacts you is in relation to keeping records of distribution information in relation to products that are being issued.
So what needs to be recorded?
- the steps you have taken to ensure that the distribution of a product is consistent with the TMD;
- any significant dealings in the product that is not consistent with the product’s TMD;
- the number of complaints received during a specific reporting period specified in the TMD (including nil complaints); and
- any further information acquired during the specified reporting period, that the TMD has specified should be reported to the issuer.
IRESS are streamlining this record keeping obligation as much as possible through their Blockchain solution which will allow for the ongoing flow of information to product providers.
We encourage you to sign up to the IRESS DDO Industry Forum HERE on 23rd September 2021 at 12:00PM to see how the IRESS solution supports this new legislation.
If you have any questions in relation to the DDO, please contact the Advice & Governance team.
In this Edition
| · A message from Jaime | · The View from Clime | · Upcoming Events |
Your Design & Distribution Obligations
With less than 4 weeks until the new DDO obligations come into effect on Tuesday 5 October 2021, it is important to understand how this will impact you in your day to day advice activities.
The Advice & Governance Team held a webinar recently which walked through some of the requirements of DDO and what the Adviser obligations entail. If you were unable to attend this webinar, please view the recording below. We encourage you to join the Design & Distribution Obligations – webinar series using the attached link HERE with the next session due for Tuesday 14th September 2021.
In the new world of DDO, distributors (ie Advisers and Madison) must take reasonable steps that will, or are reasonably likely to, result in distribution of a financial product being consistent with the Target Market Determination (TMD) for that product.
Almost all financial products being recommended by our advice community will have a TMD.
The DDO regime excludes personal advice and associated conduct from most of the new distribution obligations (due to your best interest obligations). However, where DDO impacts you is in relation to keeping records of distribution information in relation to products that are being issued.
So what needs to be recorded?
- the steps you have taken to ensure that the distribution of a product is consistent with the TMD;
- any significant dealings in the product that is not consistent with the product’s TMD;
- the number of complaints received during a specific reporting period specified in the TMD (including nil complaints); and
- any further information acquired during the specified reporting period, that the TMD has specified should be reported to the issuer.
IRESS are streamlining this record keeping obligation as much as possible through their Blockchain solution which will allow for the ongoing flow of information to product providers.
We encourage you to sign up to the IRESS DDO Industry Forum HERE on 23rd September 2021 at 12:00PM to see how the IRESS solution supports this new legislation.
If you have any questions in relation to the DDO, please contact the Advice & Governance team.
In this Edition
| · A message from Jaime | · The View from Clime | · Upcoming Events |