Overview
The Financial System Inquiry first recommended in November 2014
the introduction of a design and distribution regime, after
concerns that the current regulatory framework was insufficient in
protecting consumers and too reliant on general advice and
disclosure. As a consequence of this recommendation, the
Treasury Laws Amendment (Design and Distribution Obligations
and Product Intervention Powers) Act 2019 (Cth) was passed on
5 April 2019 introducing ASIC's product intervention powers as
well as design and distribution obligations under Chapter 7 of the
Corporations Act 2001 (Cth) (Corporations
Act).
In light of the fact that the design and distribution
obligations are scheduled to commence on 5 April 2021, ASIC has
issued Consultation Paper 325: Product design and distribution
obligations accompanied by its draft regulatory guidance on
the DDO regime. Facing now the impending commencement of the new
DDO regime, we explore the requirements, draft
