Design and Distribution Obligations
What is DDO?
All product issuers and distributors (including financial advisers) of financial products have to comply with the ASIC’s product Design and Distribution Obligations (DDO) pursuant to RG274.
As a product issuer, Cromwell Funds Management Limited (CFM) has Target Market Determinations (TMD) for each of the funds that are currently available to retail clients, to ensure compliance with these obligations.
DDO is intended to help consumers obtain appropriate financial products by requiring a consumer-centric approach to designing and distributing products by:
- Issuing financial products that are consistent with the likely objectives, financial situation and needs of the customers for whom they are intended.
- Issuers and distributors taking ‘reasonable steps’ that are likely to result in financial products reaching customers in the target market described in the TMD.
- Monitoring customer outcomes and reviewing their financial products to ensure that customers are receiving financial products that are likely to be consistent with their likely objectives, financial situation, and needs.
What is a Target Market Determination (TMD)?
The TMD is a document published by product issuers which:
- describes the class, or type, of customers who the product is likely to be appropriate for;
- specifies conditions and restrictions on how products can be distributed to customers;
- specifies events or circumstances that will require the product issuer to review the TMD for their products; and
- outlines the information that third-party distributors must provide to the product issuer.
Where are the TMDs available?
The TMDs can be found at:
The information in this section of the website is provided for the use of licensed financial advisers and wholesale investors only. In no circumstances is it to be used by a potential investor for the purposes of making a decision about a financial product or class of products. Any advice is not personal advice and has been prepared without taking into account investors objectives, financial situation or needs.
By electing to continue, you confirm that you are a licensed financial adviser or a wholesale investor.
DDO reporting requirements
Reporting will be required by advisers/platform providers and licensees as distributors and should be sent to DDO@cromwell.com.au.
As a financial adviser your main obligations are:
- Consider the Target Market Determination (TMD) when giving personal advice, and take reasonable steps to ensure that the distribution of the product is consistent with the TMD.
- Not engage in retail product distribution of a product without a TMD.
- Notify Cromwell of a significant dealing in a product that is not consistent with the product’s TMD. This does not prevent a financial adviser from recommending the product if it is appropriate for a client.
- Provide Cromwell with details of any complaints about our financial products and other distribution information stated in the TMD relating to the product.
- Maintain your records and information relating to the DDO regime – eg number of complaints and other information re TMD for up to seven years.
Cromwell recognises that our products are distributed via platforms, and as such the platform providers need to consider:
- Are the TMDs available through their platform as well as our website?
- To comply with your ‘reasonable steps’ obligation, you may need to create restrictions on access to certain investment options within the platform.
- Ensure that the platform considers the target market requirements and TMD as part of its function.
Notify Cromwell of any Dealings outside of TMD
You must consider the Target Market Determination (TMD) when giving personal advice, and take reasonable steps to ensure that the distribution of the product is consistent with the TMD.
Click here for the Dealings outside of TMD reporting template.
Notify Cromwell of a significant dealing that is not consistent with the product’s TMD
This does not prevent a financial adviser from recommending the product if it is appropriate for a client.
Click here for the Distributor Notice of Significant Dealing.
Notify Cromwell of any complaints
Complaints that relate to our financial products and other distribution information stated in the TMD.
Click here for the Distributor Notice of Complaint.
Maintain your records and information relating to the DDO regime
Whilst we have created some report templates that you can use for this reporting, we do also accept reports in the FSC standards.
Additional Platform Distributor obligations:
- You must ensure that the TMDs are available through your platform.
- To comply with your ‘reasonable steps’ obligation, you should create restrictions on access to certain investment options within the platform.