Issuers and distributors of financial products, such as financial advisers and super funds, must comply with DDO legislative requirements from 5 October 2021.
We have implemented these to ensure financial products are designed for, and distributed to, the target consumers.
A financial adviser can be a distributor who needs to follow the DDO requirements if they issue or sell a product. This includes Australian Financial Services (AFS) licensees or authorised representatives, credit licensees and representatives, and distributors of deposit products, insurance, and consumer credit insurance.
Distribution covers 'retail product distribution conduct', which includes:
- Dealing in the financial product
- Giving a disclosure document in relation to offering a financial product
- Providing a PDS
- Providing financial product advice.
An example provided by ASIC in RG274 (pdf) is someone who arranges for a client to apply for a home loan.