Product regulation and ASIC powers
The FPA has been calling for effective product regulation for decades. The commencement of the product design and distribution obligations (DDO) and ASIC’s new product intervention powers on 5 October 2021 was a significant step forward for consumer protection and for financial planners.
OVERVIEW OF DDO REGIME
Benefits of DDO regime:
- greater protections for consumers
- more transparent information to assist planners in providing quality advice
- product providers held accountable when things go wrong with products.
Requirements – Product providers
- Governance arrangements
- Consumer focused product design processes
- Target Market Determination (TMD) publicly available
- Monitor outcomes, review products and TMD Report
- Report and keep records
Requirements – AFSLs and representatives
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.