New Design and Distribution Obligations for Financial Products
On 21 December 2017, the Government began consultation on the exposure draft of a new law (the draft Bill) which will require most businesses that issue financial products to follow new rules in designing and distributing those products. The goal of these changes is to support consumers in choosing the financial products that are most appropriate for them. In today’s article, part one of two, we look at the new design and distribution obligations while in the next article we will look at the proposed Australian Securities & Investments Commission (ASIC) intervention powers also contained in the draft Bill. [caption id="attachment_2825" align="aligncenter" width="640"] Photo by Ramiro Mendes on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. Background The Financial System Inquiry (FSI) found that the existing regulatory framework for financial products…