Design and Distribution Obligations (DDO) — RG 274
Issuers + distributors of retail financial products bound by DDO from 5 October 2021.
Who must comply
AFSL holders issuing or distributing retail financial products + credit products.
What triggers it
Issuing or distributing in-scope retail product.
When due
TMD before first distribution; review on triggers; significant dealings within 10 business days.
Evidence required
TMD; distribution monitoring; significant dealings notifications; periodic review.
Max penalty
—
Effective from
5 October 2021
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
Source legislation
Topics
Source: https://download.asic.gov.au/media/5899239/rg274-published-2-march-2021.pdf. Rules Mate is not a law firm. Always verify against the live regulator source before acting.