Treasury has announced a number of amendments to the design and distribution obligations, ahead of the new regime’s commencement in October.
In a statement, Treasury said it had opted to amend the DDO framework in response to industry feedback in order to “achieve its intended operation of these reforms”.
The proposed amendments clarify that a range of product types are exempt from the DDO obligations, including margin loans to corporates, foreign cash that is settled immediately, and non-cash payment facilities such as credit and debit card facilities.
The amendments also clarify that employees of licensees are not subject to their own separate set of DDO obligations, and that 31-day term deposits are included in the regime.
In addition, they ensure that current retail and wholesale investor definitions will also be applied to the DDO framework.
Treasury said ASIC would provide temporary relief giving effect to the government’s policy intention for the changes until the legislative amendments were passed.
“Treasury will continue to engage with stakeholders leading up to the 5 October 2021 commencement and will consult with industry on the legislative amendments in due course,” the statement said.
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
A former AMP financial adviser has called on advisers in the buyer of last resort class action against AMP to “ensure ...
The Financial Services and Credit Panel has made its latest ruling over a case involving an incorrect statement of ...
The head of the FSC says the corporate regulator is sending mixed messages to the financial advice and superannuation ...
Never miss the stories that impact the industry.
Get the latest news! Subscribe to the ifa bulletin