Financial services regulation
PRODUCT DESIGN AND DISTRIBUTION
The term “regulated persons” is defined to include: –– the issuer of a financial product; –– any person required to hold a financial services licence (or who is exempt from holding such a licence by a specified provision); –– any authorised representative of such a licensee; and –– sellers of financial products where the sale requires a disclosure document or Product Disclosure Statement ( PDS ). The amendments are aimed at ensuring that financial products are targeted at an appropriate audience. Under the new legislation, the person who is responsible for preparing the disclosure document for the product (i.e. the product issuer) will now be required to: –– make a “target market determination” for a product; –– keep the target market determinations under review; –– keep records about decisions regarding target market determinations; and –– notify ASIC of significant dealings inconsistent with target market determination. PRODUCT DESIGN OBLIGATIONS ON ISSUERS
The Treasury Laws Amendment (Design and DistributionObligations and Product Intervention Powers) Act 2019 (Cth) ( Product Design and Distribution Act ) received Royal Assent. The Product Design and Distribution Act amends the Corporations Act 2001 (Cth) ( Corporations Act ) to insert a new Part 7.8A – Design and distribution requirements relating to financial products for retail clients and a new Part 7.9A – Product intervention orders. The National Consumer Credit Protection Act 2009 (Cth) ( the Credit Act ) was also amended.
PROPOSED PRODUCT DESIGN AND DISTRIBUTION OBLIGATIONS
Under the Product Design and Distribution Act, design and distribution obligations will be imposed on “regulated persons” for certain products which have disclosure requirements under the Corporations Act within the Australian Securities and Investments Commission Act 2001 (Cth) ( ASIC Act ).
Made with FlippingBook flipbook maker