DDO Learnings – one year in

The design and distribution obligations (DDO) regime has been in effect for over one year now and no doubt you are aware ASIC has targeted surveillances underway to check whether product issuers and distributors are complying with DDO. To date, ASIC has issued 17 interim stop orders in ‘DDO related’ matters and six remain in place. Prior to the firm joining Hall & Wilcox, McMahon Clarke was monitoring this activity closely and compiled some ‘learnings’ and clarifications to share about ASIC’s current expectations in relation to compliance with the DDO requirements. 

What do you need to know?

Some of our observations arise from our participation in the Financial Services Council (FSC) DDO Working Groups. Others arise from ASIC feedback we have been privy to as a result of being engaged by managers who have been the subject of ASIC surveillance. We should add that these managers prepared DDO programs/target market determinations (TMDs) themselves but have since engaged with us to assist them in dealing with ASIC. That is, none of the issues we are dealing with have arisen from the approach we originally took when DDO was introduced. However, we are considering ASIC’s feedback carefully, reviewing our approach, and seeing if any adjustments and improvements are recommended to reflect best practice.

Our DDO learnings

Our list of learnings and clarifications is not exhaustive and will be updated from time to time to reflect further guidance from ASIC and as implementation of the DDO regime evolves.

View our DDO Learnings

Go to our DDO resource centre

Contact

Sean McMahon

Sean has more than 25 years’ experience in the funds management and corporate sectors.

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