In brief - offerors (including insurers) and
distributors of financial products will now be responsible for
determining the target market for products and appropriate
distribution strategies
The Government recently passed the Treasury Laws Amendment
(Design and Distribution Obligations and Product Intervention
Powers) Bill 2018 (Bill).
In February 2018 we raised Treasury's revolutionary proposal
for
Design and Distribution Obligations and Product Intervention Powers
in February 2018.
The proposal generated significant industry resistance as it
involved the executive in the creation and distribution of new
financial products, as opposed to policing issued products.
It seems that the aftereffects of the Royal Commission and
associated pressure for financial services regulatory reform have
created sufficient momentum to override legitimate industry
concerns.
