BID to 'intersect' with design and distribution obligations

BID to 'intersect' with design and distribution obligations


BID to ‘intersect’ with design and distribution obligations
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The incoming design and distribution obligations will “intersect” with BID, as lenders examine the “competency” of distribution channels and how conflicts of interest could be managed, according to a law firm.
At a Pepper Money Insights 2021 webinar, lawyer and managing associate in Dentons' Financial Products and Services group, Rachel Walker, addressed the incoming product design and distribution obligations (DDO) for financial products.
The new obligations, which were passed by Parliament in 2019 following a recommendation in the Financial System Inquiry, will cover both lenders and brokers from 5 October 2021.
They require issuers and distributors of financial products to have a consumer-centric approach to designing and distributing products.   

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