Who must comply with Design and Distribution Obligations (DDO) — RG 274?

AFSL holders issuing or distributing retail financial products + credit products.

What triggers Design and Distribution Obligations (DDO) — RG 274?

Issuing or distributing in-scope retail product.

When is Design and Distribution Obligations (DDO) — RG 274 due?

TMD before first distribution; review on triggers; significant dealings within 10 business days.

What evidence is required for Design and Distribution Obligations (DDO) — RG 274?

TMD; distribution monitoring; significant dealings notifications; periodic review.

Rules Mate

Summary

Section 994B Corporations Act. Issuers must make TMD identifying class of consumers + review triggers. Distributors must distribute consistently with TMD + report significant dealings outside TMD to issuer + ASIC. RG 274 guides.

Enforced by

ASIC

Source legislation

corporations act 2001

Topics

financial-servicesconsumer-protection

Related obligations

CWLTHComply with AFSL general obligations (s 912A)AFSL holders must do all things necessary to ensure financial services are provided efficiently, honestly and fairly.
CWLTHReport reportable situations to ASIC within 30 days (RG 78)AFSL/ACL holders must report reportable situations within 30 calendar days of becoming aware.
CWLTHComply with Design and Distribution Obligations (DDO)Issuers and distributors of retail financial products must have a Target Market Determination (TMD) and distribute consistently with it.
CWLTHMaintain adequate PI insurance (AFSL holders, RG 126)AFSL holders providing financial services to retail clients must hold adequate professional indemnity insurance.
CWLTHBan on conflicted remuneration (FOFA)AFSL holders and representatives must not accept conflicted remuneration in connection with retail financial product advice.
CWLTHConsumer Credit Hardship Notice (NCC ss 72-73)Credit providers must respond to hardship notice + assess variation request.

Frequently asked questions

Who must comply with Design and Distribution Obligations (DDO) — RG 274?: AFSL holders issuing or distributing retail financial products + credit products.
What triggers Design and Distribution Obligations (DDO) — RG 274?: Issuing or distributing in-scope retail product.
When is Design and Distribution Obligations (DDO) — RG 274 due?: TMD before first distribution; review on triggers; significant dealings within 10 business days.
What evidence is required for Design and Distribution Obligations (DDO) — RG 274?: TMD; distribution monitoring; significant dealings notifications; periodic review.