Product regulation and ASIC powers
New product design and distribution obligations and ASIC’s new product intervention power will commence on 5 April 2021.
The new product design and distribution regime requires:
- Design – product manufacturers to carefully consider the kind of consumers that their products are likely to be appropriate for, and to design and refine their products with this target market in mind.
- Distribution – product issuers and their distributors to take reasonable steps to distribute to consumers in the target market.
ASIC is currently consulting on its draft Regulatory Guide for the new financial product design and distribution obligations. Submissions are due 11 March 2020.
The FPA has strongly advocated for greater oversight of financial products for many years. The introduction of product regulation is a significant win for consumer protection.
Submissions are due by 15 March 2017.
Read the Government’s media release
Read the government’s response to the FSI recommendations
We are always keen to hear your valuable feedback and suggestions. Please let us know if there are any policy issues or concerns that affect you.