About DDO
ASIC Regulatory Guide 274 - Design and Distribution Obligations (DDO) requires Issuers and Distributors of financial products to take steps to ensure that retail clients are offered products that are likely to be consistent with their likely objectives, financial situation and needs.
The DDO regime is designed to provide a framework for all retail products (funds) to be more focussed on client outcomes throughout the design and distribution process.
AMP will have a Target Market Determination (TMD) for every fund and unit class we make available for our retail clients to invest in. TMDs are available via our website. We will also ensure reasonable steps are taken to ensure on an ongoing basis that distribution of our products is consistent with the target market determination of the fund.
Frequently asked questions
ASIC RG274 - DDO require Issuers and Distributors of financial products to take steps to ensure that retail clients are offered products that are likely to be consistent with their likely objectives, financial situation and needs.
What does this mean for AMP and the financial services
industry?
The DDO regime is designed to provide a framework for all products to be more focussed on client outcomes throughout the design and distribution process.
Obligations are imposed on AMP as an Issuer and Distributor of financial products.
What are AMP’s obligations?
AMP is primarily the Issuer of products / funds through Platforms and intermediated channels. We are considered a Distributor for our direct retail clients. Relevantly the key obligations that apply to Issuers and Distributors are the following:
As Issuer of products:
- Make a target market determination for all products / funds
- Review the target market for appropriateness including in response to the occurrence of certain events
- Keep records about the TMD
- Take reasonable steps to ensure distribution is consistent with the TMD
- Notify ASIC if we become aware that a significant dealing outside the TMD has occurred
As Distributor of products:
- Must not engage in retail product distribution without a TMD
- Must not engage in retail distribution where the TMD may no longer be appropriate
- Take reasonable steps to ensure distribution is consistent with the TMD
- Collect, keep and provide distribution information
- Notify the Issuer of significant dealings not consistent with the TMD
- Notify the Issuer of complaints relating to the product design, availability and distribution
Why was it introduced?
ASIC introduced DDO to clearly identify who the target market is for the distribution of retail products.
Each retail product has its own TMD for every product / fund we make available to our clients to invest in and these are available via our website.
When did it start?
DDO compliance comes into effect from 5th October 2021.
How does it affect me?
DDO regulations are intended to benefit the consumer of products / funds.
Most financial services products are included. This includes most banking products along with Managed Investment Schemes (MIS), Superannuation (excluding My Super) and Insurance products.
AMP will facilitate reasonable steps that will or are likely to result in the distribution of products that are consistent with the TMD of the product / fund.
What is AMP doing about it?
AMP is taking steps to enable compliance with the requirements of ASIC’s DDO from 5 October 2021.
We're here to help
If you have any questions about this update or your AMP investments, please contact your Account Manager or our Client Services Team
AMP Investments
Mon - Fri: 8.30am – 5pm (AEST)
What you need to know
This information is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of National Mutual Funds Management Ltd (ABN 32 006 787 720, AFSL 234652) (NMFM).
While every care has been taken in the preparation of this information, NMFM makes no representation or warranty as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs.
ipac Asset Management Limited ABN 22 003 257 225, AFSL 234655) (IAML) is the responsible entity of the AMP MySuper Option and the issuer of the units in the AMP MySuper Option and the Product Disclosure Statement(s) (PDS). To invest in the Option(s), investors will need to obtain and consider the current PDS or other offer document for the relevant Option(s) available at amp.com.au/investments-pds. The PDS or offer document contains important information about investing in the Option(s) and it is important that investors read the PDS or offer document before making a decision about whether to acquire, or continue to hold or dispose of units in the Option(s). A target market determination has been made in respect of the Option(s) and is available at www.amp.com.au/investments-tmd. Neither IAML, NMFM nor any other company in the AMP Group guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this document. Past performance is not a reliable indicator of future performance.
All information on this website is subject to change without notice.
The information included on this page was current on the date published within the document or report and issued by the entity identified in the document or report . For up-to-date information, we refer you to the relevant product disclosure statement, target market determination and product updates available at amp.com.au.