Australia: ASIC guide sets design, distribution of financial products

The Australian Securities and Investments Commission (ASIC) has published regulatory guide RG 274, setting out the design and distribution obligations (DDO) of financial products, including superannuation products (exemptions apply for MySuper products and defined benefits). The DDO takes effect on 5 Oct 2021, and aims to improve financial outcomes for consumers, manage nonfinancial risks, and minimize the need for remediation. The DDO will apply to most financial products across all sectors of the financial services market, and ASIC confirmed it will support industry’s implementation efforts.
The guidance is principles-based and the financial services sector can tailor existing operations and product offerings to DDO requirements. The guidance:
- Clarifies which financial products are subject to the DDO.
- Sets out ASIC’s interpretation of the DDO.
- Explains how ASIC will administer the DDO.
Related resources
Non-Mercer resource
- RG 274 Product design and distribution obligations (ASIC, 11 Dec 2020)
Mercer Law & Policy resource
Related Solutions
Related insights
-
Law & PolicyThe Strengthening Benefit Plans Act of 2025 contains two proposals to give defined benefit plan sponsors more flexibility to use some “trapped” surplus plan assets…
-
Law & Policy
Roundup: Global employer resources on artificial intelligence
Artificial intelligence is becoming a permanent feature of the workplace and poses challenges/considerations as it reshapes work. This roundup provides general… -
Law & Policy
House bills target DOL’s ERISA enforcement, litigation activity
House Republicans recently proposed legislation aimed at increasing the transparency of Department of Labor enforcement activity.