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: