{"id":266,"date":"2022-12-22T00:59:31","date_gmt":"2022-12-22T00:59:31","guid":{"rendered":"https:\/\/australianfiduciaries.com\/?page_id=266"},"modified":"2023-09-19T13:08:29","modified_gmt":"2023-09-19T03:08:29","slug":"ddo","status":"publish","type":"page","link":"https:\/\/australianfiduciaries.com\/ddo\/","title":{"rendered":"Design and Distribution Obligations"},"content":{"rendered":"

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Design and Distribution Obligations<\/h1>\n

The design and distribution obligations (DDO) are intended to help consumers obtain appropriate financial products by requiring issuers and distributors to apply a consumer-centric approach to the design and distribution of their financial products.<\/p>\n

To ensure that the distribution of its products is directed towards an appropriate target market, Australian Fiduciaries Limited has issued target market determinations (TMDs) for each class of units issued by its funds.<\/p>\n

Target Market Determinations (TMDs)<\/h1>\n

Below are the TMDs issued by Australian Fiduciaries Limited for each class of units available for its funds. The TMD\u2019s set out the who each class of units is appropriate for and any restrictions relating to the sale and distribution of the units.<\/p>\n

Each TMD has separate distribution conditions in relation to the distribution of the units. Distributors are required to observe the relevant conditions for each unit class.<\/p>\n

Target Market Determination – Balanced Units (Australian Fiduciaries Limited – Global Diversified Alpha Fund)<\/a><\/p>\n

Target Market Determination – Balanced Units (Australian Fiduciaries Limited – Global Multi-Strategy Fund)<\/a><\/p>\n

Target Market Determination – Conservative Units (Australian Fiduciaries Limited – Global Diversified Alpha Fund)<\/a><\/p>\n

Target Market Determination – Conservative Units (Australian Fiduciaries Limited – Global Multi-Strategy Fund)<\/a><\/p>\n

Target Market Determination – Diversified Units (Australian Fiduciaries Limited – Global All Seasons Fund)<\/a><\/p>\n

Target Market Determination – Growth Units (Australian Fiduciaries Limited – Global Diversified Alpha Fund)<\/a><\/p>\n

Target Market Determination – Growth Units (Australian Fiduciaries Limited – Global Multi-Strategy Fund)<\/a><\/p>\n

Target Market Determination – High Growth Units (Australian Fiduciaries Limited – Global Diversified Alpha Fund)<\/a><\/p>\n

Target Market Determination – High Growth Units (Australian Fiduciaries Limited – Global Multi-Strategy Fund)<\/a><\/p>\n

Reporting requirements for distributors<\/h1>\n

The following section is for distributors of Australian Fiduciaries Limited products and sets out Australian Fiduciaries Limited\u2019s expected reporting requirements. Distributors include Australian Fiduciaries Limited\u2019s related entities and authorised third party Australian financial services licensees.<\/p>\n

Distributors must report to Australian Fiduciaries Limited using the following email address: <\/strong>admin@australianfiduciaries.com.au<\/a>. <\/strong><\/p>\n

Distributors should adopt the FSC data standards<\/em><\/strong><\/a> for all reports.<\/p>\n\n\n\n\n\n\n
Reporting requirement<\/td>\nReporting period<\/td>\nWhich distributors this requirement applies to<\/td>\n<\/tr>\n
\n

Complaints (as defined in section 994A(1) of the Act) relating to the product design, product availability and distribution.<\/p>\n

The distributor should provide all the content of the complaint, having regard to privacy.<\/p>\n<\/td>\n

Within 10 business days following end of calendar quarter.<\/td>\nAll distributors who have received a complaint in the relevant quarter<\/td>\n<\/tr>\n
\n

\u2018Significant Dealing\u2019 outside of target market, under s994F(6) of the Act.<\/p>\n

See \u2018Significant dealings\u2019 for further detail.<\/p>\n<\/td>\n

As soon as practicable but no later than 10 business days after distributor becomes aware of the Significant Dealing.<\/td>\nAll distributors<\/td>\n<\/tr>\n
To the extent a distributor is aware of dealings outside the target market these should be reported to the issuer, including reason why acquisition is outside of target market, and whether acquisition occurred under personal advice.<\/td>\nWithin 10 business days following end of calendar quarter.<\/td>\nAll distributors<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Significant dealings<\/h1>\n

This guidance applies to all TMDs issued by Australian Fiduciaries Limited on this website.<\/p>\n

Dealings may be \u2018significant\u2019 because:<\/p>\n

    \n
  • they represent a material proportion of the overall distribution conduct carried out by the distributor in relation to the product, or<\/li>\n
  • they constitute an individual transaction which has resulted in, or will or is likely to result in, significant detriment to the consumer (or class of consumer).<\/li>\n<\/ul>\n

    In each case, the distributor should have regard to:<\/p>\n

      \n
    • the nature and risk profile of the product (which may be indicated by the product\u2019s risk rating or withdrawal timeframes),<\/li>\n
    • the actual or potential harm to a consumer (which may be indicated by the value of the consumer\u2019s investment, their intended product use or their ability to bear loss), and<\/li>\n
    • the nature and extent of the inconsistency of distribution with the TMD (which may be indicated by the number of red or amber ratings attributed to the consumer).<\/li>\n<\/ul>\n

      Objectively, a distributor may consider a dealing (or group of dealings) outside the TMD to be significant if:<\/p>\n

        \n
      • it constitutes more than half of the distributor\u2019s total retail product distribution conduct in relation to the product over the reporting period,<\/li>\n
      • the consumer\u2019s intended product use is Solution \/ Standalone, or<\/li>\n
      • the consumer\u2019s intended product use is Core component and the consumer\u2019s risk (ability to bear loss) and return profile is Low.<\/li>\n<\/ul>\n

         <\/p>\n

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        Design and Distribution Obligations The design and distribution obligations (DDO) are intended to help consumers obtain appropriate financial products by requiring issuers and distributors to apply a consumer-centric approach to the design and distribution of their financial products. To ensure that the distribution of its products is directed towards an appropriate target market, Australian Fiduciaries […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"footnotes":""},"_links":{"self":[{"href":"https:\/\/australianfiduciaries.com\/wp-json\/wp\/v2\/pages\/266"}],"collection":[{"href":"https:\/\/australianfiduciaries.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/australianfiduciaries.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/australianfiduciaries.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/australianfiduciaries.com\/wp-json\/wp\/v2\/comments?post=266"}],"version-history":[{"count":7,"href":"https:\/\/australianfiduciaries.com\/wp-json\/wp\/v2\/pages\/266\/revisions"}],"predecessor-version":[{"id":427,"href":"https:\/\/australianfiduciaries.com\/wp-json\/wp\/v2\/pages\/266\/revisions\/427"}],"wp:attachment":[{"href":"https:\/\/australianfiduciaries.com\/wp-json\/wp\/v2\/media?parent=266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}