What are the Design & Distribution Obligations (DDO)?
From 5 October 2021, all retail financial product issuers must comply with the Design and Distribution Obligations (DDO) as regulated by the Australian Securities and Investment Commission (ASIC).
In line with DDO, retail financial products are now required to have what is called a Target Market Determination (TMD). The TMD outlines the target market that a product is designed for after considering several key consumer attributes.
As part of the application process for new investments, investors will be asked a series of filtering questions relating to the TMD to ensure they clearly understand the key risks of the product in which they are investing.
The current open Trilogy Funds products to which DDO will apply are:
What do I need to do?
Target Market Determinations (TMDs)
All product issuers are required to make a Target Market Determination (TMD) for each open retail product. The TMD outlines the target market that a product is designed for after considering several key consumer attributes. The purpose of the TMD is to ensure the product, including its key attributes, align predominantly with the investor’s objectives, financial situation and needs. Â
How does the TMD apply to me?
As an investor, you will need to ensure you read and understand the product specific Product Disclosure Statement (PDS) and TMD. When you complete your application form, you will be asked a series of TMD specific filtering questions. If your answers sit outside the product’s TMD, Trilogy Funds recommends that you seek personal advice from your Financial Adviser, stockbroker or other professional advisers to ensure you are investing in a product that best suits your investment objectives and risk profile.Â
If you don’t have a Financial Adviser, you can speak to the Trilogy Funds Investor Relations team to learn more about the product you wish to invest in. Please note we can only provide generic product advice.
As an adviser, it is important that you familiarise yourself with the product specific TMDs and distribution conditions and distributor reporting obligations therein. You can view our product specific TMDs below.Â