Design and distribution obligations RG274

About RG274 Design and distribution obligations RG274

It was five or so years in the making but participants in many major financial centres including Australia have had to adjust to the introduction of design and distribution obligations (DDOs).

Design and distribution obligations are clear evidence that convergence of financial services regulation and competition law is accelerating globally, with transparency, product governance, and disclosure distinct themes likely to influence the approaches of regulators and requirements on the part of licensed institutions for a long time to come.

The recent ASIC compliance review of the DDO obligations and the subsequent enforcement actions against product issuers is a clear indication that ASIC will continue to prioritise its focus on the DDO regime.

About our regulatory short course

New rules, among other outcomes, dramatically alter traditional information flows between product issuers, advisers and end consumers, exposing issuers and distributors to unprecedented levels of scrutiny and potentially even liability.

Join our journey from conception to DDO implementation, including a look at what areas are being targeted and what the new measures might mean for your organisation.

Having long enforced Target Market Determination requirements, more recently ASIC’s focus has shifted to the “reasonable steps” obligation and other governance procedures.

Program Content

  • Background to design and distribution obligations
  • Overview of design and distribution obligations
  • Regulatory guidance on design and distribution obligations
  • ASIC’s administration of DDOs
  • Associated regulatory framework – APRA product governance
  • What might DDO mean for your organisation? 50

Learning Outcomes

  • Discuss the emerging global and domestic themes that drove the creation and implementation of design and distribution obligations
  • Explain the overarching principles regarding design and distribution obligations
  • Describe how ASIC intends to exercise its product intervention powers in general terms, based on its treatment of product segments where it has already taken action
  • Evaluate how the conduct of financial services institutions in Australia will be impacted by design and distribution obligations and product intervention powers.

What you will learn

Who is this course for?

  • Compliance managers
  • Representatives
  • Senior managers

Units of Competency

Pre-requisite

Recognition of Prior Learning

Certification

You will be awarded a Certificate of Completion. It will be available online for you to download and print immediately.

ASIC supervised licensees: ASIC Regulation
FAS-supervised licensees (self report): Regulatory compliance and consumer protection

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Frequently Asked Questions

ASIC's RG 274 design and distribution obligations is for issuers and distributors of financial products that must comply with the design and distribution obligations in Pt 7.8A of the Corporations Act. It explains ASIC's interpretation of the design and distribution obligations, expectations for compliance, and its general approach to administering the obligations. RG274 design and distribution obligations are intended to help consumers obtain appropriate financial products by requiring issuers and distributors to have a consumer-centric approach to the design and distribution of products.  

The target market, distribution conditions, and information related to review and monitoring must be set out in a document called a ‘target market determination’ (TMD). The TMD is a written document prepared and made available before engaging in ‘retail product distribution conduct’. (RG 274.10) Under the design and distribution obligations, a product issuer must identify an appropriate target market for their product. This includes assessing whether the product, including its ‘key attributes’, is consistent with the needs, objectives and financial situation of a particular class of customer. If an appropriate target market cannot be identified for a product, an issuer will not be able to offer the product.

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  • Purchase course/s online. (You can add multiple courses to the cart.) Please note: Online orders may take up to 1 business day to be processed and for your team to receive their course login details.
OR
Contact us for your Corporate Solution.
What is RG206?2023-04-21T07:53:53+10:00

Regulatory Guide 206 Credit licensing: Competence and training (RG 206)

Credit licensees must comply with the organisational competence obligation in s47(1)(f) of the National Consumer Credit protection Act 2009 (National Credit Act). Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out the minimum expectations for demonstrating organisational competence.

What you need to do to comply will depend on the nature, scale and complexity of your business. However, Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out our minimum expectations for demonstrating organisational competence.

You must also ensure that your representatives are adequately trained and competent to engage in the credit activities authorised by your licence: s47(1)(g).

ASIC generally expects you to determine what is appropriate initial and ongoing training for your representatives and to embed this in your recruitment and training systems.

Updated annually, our CPD is designed to enable Responsible Managers and Representatives of Australian Credit Licensees to meet their mandatory RG206 continuing training requirement. Our CPD that is structured, properly assessed and recorded.

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