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ARTICLE · 11 MAY 2023

ASIC Reports On DDO Compliance By Investment Product Issuers

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On 3 May 2023 the Australian Securities and Investments Commission (ASIC) released its review on compliance by investment

AustraliaCompliance
Kane Barnett
Kane Barnett

On 3 May 2023 the Australian Securities and Investments Commission (ASIC) released its review on compliance by investment product issuers of the Design and Distribution Obligations (DDOs). In ASIC's view, there is still considerable room for improvement by product issuers.

In the time since its commencement in October 2021, ASIC has issued 26 interim stop orders for breaches of the DDOs target market determination (TMD) requirements. Additionally, ASIC has commenced two civil penalty proceedings for alleged breaches of DDOs.

The latest report (which can be read here) examined the DDOs in relation to investment product issuers citing a concern that consumers risked being inappropriately exposed to high-risk products. The report outlines ASIC's observations and highlights the aspects of the DDOs most in need of improvement by investment product issuers. The most prevalent factors cited as causes of the stop orders included:

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