DDO requires issuers and distributors of financial products to have a customer-centric approach in designing and distributing its products, with the aim of helping customers to obtain financial products that are appropriate for their objectives, financial situation and needs. The obligations apply to a broad number of financial products including (but not limited to) various Superannuation, Pension and Self-Managed Invest products offered by Hostplus.
A Target Market Determination (TMD) describes the target market for a financial product, explains any distribution conditions or restrictions on the sale of the product and establishes the reporting requirements for the distributors of its products. Hostplus publishes a series of TMDs covering the products we offer to members, outlining the product’s target market and purpose.
Issuers and distributors of financial products must comply with the design and distribution obligations in Pt 7.8A of the Corporations Act 2001 (Corporations Act) from 5 October 2021.
The design and distribution obligations are intended to help consumers obtain appropriate financial products by requiring issuers and distributors to have a consumer-centric approach to the design and distribution of products.
In particular, issuers must design financial products that are likely to be consistent with the likely objectives, financial situation and needs of the consumers for whom they are intended.
A distributor is expected to understand the requirements we establish in the TMDs for our products. This means a distributor will need to:
Distributors of Hostplus products are required to report specific matters, such as complaints, distribution outside the TMD (unless it is based on personal advice) and significant dealings. If you need any assistance with the reporting, please email your enquiry to firstname.lastname@example.org.
A complaint is an expression of dissatisfaction made to us by an account holder (or someone legitimately representing their interests), related to our products or services where a response or resolution is explicitly or implicitly expected or legally required. Distributors should refer to ASIC’s guidance on complaints (Regulatory Guide 271 Internal Dispute Resolution) for further information.
The DDO obligations require external distributors of our products to report to us the volume and details of any complaints they have received about the design or distribution of our products covered by our TMDs.
Sales of product outside of TMD
Distributors should report all sales outside of the target market that were not based on personal advice. This should include an explanation as to why the distribution is outside the target market.
A significant dealing report is intended to capture material or significant distribution of a product outside of its TMD.
Whether or not a dealing is significant will depend on a variety of circumstances, including (but not limited to):
‘Significant’ is not defined by the Corporations Act. Each distributor will need to make an individual assessment in the circumstances of each case to determine when a dealing (or dealings) outside of a target market is significant, and this must be reported to Hostplus immediately.
Distributors are requested to use the DDO reporting form below to report to Hostplus any information requested by Hostplus in its TMDs and referred to above.
If, for any reason you are unable to report to Hostplus via the above form, you can submit your DDO report to Hostplus via email to email@example.com.
Any DDO report submitted to Hostplus via email should include the following information:
If you need any assistance with the reporting, please email your enquiry to firstname.lastname@example.org.