Australia: ASIC guide sets design, distribution of financial products

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. 

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Paul Shallue
by Paul Shallue

Principal, Mercer Wealth

Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

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