New Design and Distribution Obligations and Product
Intervention Powers for Financial Products
The bill passed both Houses in Parliament as of 3 April 2019
and passed into law on 5 April 2019.
Design and Distribution Obligations
Those who issue and distribute a wide range of financial
products will now hold more direct responsibility for ensuring that
the right products end up in the right hands.
The regulatory requirements regarding the issuance and
distribution of financial products to retail clients in Australia
is to be overhauled. New Design and Distribution
Obligations in respect of financial products offered to retail
customers are coming and market participants along the distribution
chain will have two years to prepare. The new regime in part
reflects ongoing concern that disclosures in relation to financial
products (such as in product disclosure statements) are seldom read
and are no longer sufficient to fully protect consumers.
