ASIC Releases Regulatory Guide On Product Design And Distribution Obligations Date
11/12/2020
ASIC today released a new regulatory guide on the product design and distribution obligations (RG 274), following extensive consultation.
The design and distribution obligations require firms to design financial products to meet the needs of consumers, and to distribute their products in a more targeted manner. The obligations were passed by Parliament in 2019 following a recommendation of the Financial System Inquiry.
RG 274 addresses demand from industry for ASIC guidance as they prepare for the obligations to take effect on 5 October 2021. This follows a two year transition period and a six month deferral of commencement provided by ASIC due to the impacts of COVID-19.