DDO & TMD

The Design and Distribution Obligations (DDO) 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.

In particular:

• issuers must design financial products that are likely to be consistent with the likely objectives, financial situation and needs of the consumers for whom they are intended;
• issuers and distributors must take ‘reasonable steps’ that are reasonably likely to result in financial products reaching consumers in the target market defined by the issuer; and
• issuers must monitor consumer outcomes and review products to ensure that consumers are receiving products that are likely to be consistent with their likely objectives, financial situation and needs.

DDO requires issuers and distributors to develop and maintain effective product governance arrangements across the life cycle of financial products. The key intention is to improve outcomes for consumers that invest in these products.