Target Market Determinations
What is a Target Market Determination (TMD)?
A Target Market Determination (TMD) is a document that describes who a financial product has been designed for based on their objectives, financial situation and needs, as well as conditions on how it can be distributed to customers.
Why is a Target Market Determination required?
TMDs are required under the Treasure Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019.
They are part of a framework designed to ensure that financial products are distributed responsibly and in line with customer needs.
Our Target Market Determinations
Distributor DDO Reporting Requirements:
Under the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019 Cth. (DDO), a regulated person engaging in retail product distribution conduct must report complaints and significant dealings to us.
Complaints Reporting:
Distributors are required to provide us with details of all complaints related to our products by the end of each quarter.
Significant Dealings:
Distributors are required to report any significant dealings distributed to customers outside the target market within 10 business days.
Reporting Templates:
Email the completed report to [email protected] within the required timeframe.
Frequently Asked Questions
DDO requires product issuers like KeyInvest to:
- create and maintain a publicly available TMD for products in scope of DDO;
- take reasonable steps that will, or are reasonably likely to, result in distribution being consistent with the TMD;
- notify ASIC of any significant dealings that are not consistent with the TMD; and
- keep records of decisions made in relation to the TMD and associated reviews (together with the reasons for those decisions).
DDO Requires distributors to:
- not distribute a product unless a TMD is in place;
- take reasonable steps that will, or are reasonably likely to, result in distribution being consistent with the TMD;
- notify the issuer of significant dealings that are not consistent with the TMD; and
- collect and keep complete and accurate records of certain information and provide that information to issuers.
KeyInvest’s open financial products subject to DDO include:
- Life Events Bond (LEB): A versatile investment bond designed for various life events.
- Funeral Bond: A product tailored for individuals planning for funeral expenses.
Under DDO, these obligations apply to anyone who engages in “retail product distribution conduct” which is defined under the Corporations Act 2001 (Cth) to include:
- dealing in a financial product;
- giving disclosure documentation in relation to offering a financial product;
- providing a PDS, and
- providing financial advice.
A significant dealing occurs when a KeyInvest financial product is sold to investors outside of its Target Market Determination (TMD) in a way that is material and non-trivial.
Distributors of KeyInvest products are required to report any significant dealings they become aware of within 10 business days, as outlined in the Target Market Determination (TMD) for each product.
For more information regarding our Design and Distribution Obligations (DDO) contact us at [email protected].