From 5 October 2021, issuers and distributors of financial products that are distributed to retail clients must comply with the Design and Distribution Obligations under the Corporations Act 2001 (DDO Regime).

  • The DDO Regime introduced new obligations on all product issuers (Advance/External Funds) and distributors (Advisers) to ensure products are designed for specific targeted class of customers (target market) and are directed towards the target market by specifying distribution conditions and
  • The DDO Regime requires that reasonable steps are in place to ensure customers are offered products that are likely to be consistent with their objectives, financial situation and needs.

On this page we have the latest information on:

  • Our Target Market Determinations (TMDs)
  • Instructions for using our DDO Reporting Tool, including a short training video.

 

Overview of DDO

DDO requires issuers and distributors to take a consumer-centric approach - placing consumer outcomes front and centre at the product design, product distribution, and monitoring and review stages of the product life cycle.

ASIC has published Regulatory Guide RG 274 – Product Design and Distribution Obligations outlining their expectations for compliance, and general approach to administering the obligations. The most recent Guide issued is dated December 2020. Please stay ahead of changes by referring to ASIC at www.asic.gov.au

Target Market Determinations

A Target Market Determination (TMD) is a document that describes a class of customers/group of retail clients (the target market) for whom a product is likely to be appropriate or consistent with their likely objective, financial situation, and needs plus conditions and restrictions under which the product can be distributed.

 

Target Market Determinations

Our TMDs were made available online from 27 September 2021 at our website www.bt.com.au/tmd.

All Advance issued TMDs were made available on our public websites, including any badged TMDs that may be available under that product and through our platforms. All other externally issued TMDs, for underlying funds and managed portfolios available on our platforms, were made available on our platforms via Morningstar.
 

Information for Advisers

Reporting obligations and the DDO Reporting Tool

You can use the DDO Reporting Tool to report certain information to us such as a significant dealing or an acquisition outside of target market. Complaints can be reported via the online complaints feedback form.

Any information contained in the tool regarding distributor reporting obligations is a guide only. For detailed information regarding your distributor obligations, ASIC’s expectations for compliance and their general approach to administering the obligations of the DDO Regime, please refer to the ASIC Regulatory Guide RG 274 – Product Design and Distribution Obligations.

If you provide advice across multiple BT, Asgard, Advance and/or Margin Lending products, you only need to register once to gain access to the DDO Reporting Tool.

By using the DDO Reporting Tool, you will be bound by the DDO Reporting Tool Terms of use. These are located in the footer of the tool under Legal > DDO Reporting Tool Terms of Use. Please ensure you read these carefully.

It is unlikely that the DDO Reporting Tool will enable distributors to report all information that the DDO Regime may require distributors to report to a product issuer. It will not enable distributors to report complaints. Further, the TMDs for different financial products may require different information to be reported to the product issuer, and the DDO Reporting Tool does not take into account the specific reporting requirements in a TMD for any particular product. If the DDO Regime requires distributors to report a particular item of information to a product issuer and the DDO Reporting Tool does not enable distributors to enter and submit that information, distributors must report that information directly to the product issuer. If the DDO Reporting Tool is not available at any time, distributors must report the required information directly to the relevant product issuer by other means.
 

Access the DDO Reporting Tool

Use our DDO Reporting Tool to report any Significant Dealings or Acquisition Outside Target Market. For more information about the design and distribution obligations (DDO) and your obligations as a distributor, please refer to ASIC Regulatory Guide 274.

If you are an external adviser and do not have an account with us, or access to our DDO Reporting tool, complete the registration form to obtain access to the DDO Reporting Tool available here.
 

DDO Reporting Tool training module

Our short online training module, which demonstrates how to use the DDO Reporting Tool and provides an overview of DDO distributor obligations, is available now. The module will step you through how to report significant dealings and acquisitions outside of target market.

 

Frequently asked questions (FAQ)

Click through to view a range of FAQs covering key topics.

1. Will all Advance products require a TMD?

No, but most will. In addition, some products that are issued by third parties, but available for selection through our platform products, will also require a TMD.

We are also working with third party product issuers to collect TMDs for those products wherever possible, although it is that issuer's responsibility to make their TMDs available free of charge.

2. What specific additional information will Advance require distributors to provide?

From 5 October 2021, Advance will require distributors to notify us of the following information:

  • Complaints in relation to the product covered by the TMD (including details of the complaints): at least quarterly
  • Acquisitions outside the target market of the TMD for a product: at least quarterly
  • Significant dealings that are not consistent with the TMD for a product (including details of the significant inconsistent dealings): as soon as practicable and within 10 business days of becoming aware of the significant inconsistent dealing.

These collection requirements are set out in each product’s TMD under the Distribution Information section.

3. How will distributors report the required information to us?

From 5 October, we’re asking distributors to report required information via the following channels:

  • Complaints: via the current complaints process:
    • Over the phone: Advance Adviser line 1800 819 935
    • The adviser's relationship manager
  • Acquisitions outside of target market and significant dealings: via a new DDO Reporting Tool which has been developed to allow external distributors of Advance products to report data specified in the TMD for the Advance product (excluding complaints).

It is unlikely that the DDO Reporting Tool will enable distributors to report all information that the DDO Regime may require distributors to report to a product issuer. It will not enable distributors to report complaints. Further, the TMDs for different financial products may require different information to be reported to the product issuer, and the DDO Reporting Tool does not take into account the specific reporting requirements in a TMD for any particular product. If the DDO Regime requires distributors to report a particular item of information to a product issuer and the DDO Reporting Tool does not enable distributors to enter and submit that information, distributors must report that information directly to the product issuer. If the DDO Reporting Tool is not available at any time, distributors must report the required information directly to the relevant product issuer by other means.

4. How does the DDO Reporting Tool work?

When reporting via the DDO Reporting Tool, on-screen prompts will be displayed to help distributors enter the required information.

5. How will Advance notify distributors of a new TMD or changes to target market?

The most current TMD will be available online for distributors to review. We will take all reasonable steps to notify distributors, via desktop notification, if a new TMD or a change to target market is applicable.

Contact us

We’re here to help. If you can’t find the answer to your question in the FAQ section above, please contact us.

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