Design and Distribution Obligations (DDO) Course (Australia)

The Design and Distribution Obligations (DDOs) are important laws that aim to help consumers obtain appropriate financial products. The DDOs require a customer-centered approach when designing and distributing financial products.

Most financial products under the Corporations Act are covered by the DDOs, including basic banking products (such as transaction accounts and term deposits), non-cash payments products, and insurance products. Consumer credit products under the National Consumer Credit Protection Act are also covered by the DDOs.

Staff of financial services businesses need to understand how the DDOs work. They need to know the implication of the DDOs for their role, and how it will affect their interaction with customers. There are significant penalties for business that fail to comply with the DDOs.

This short (20 minutes) training introduces the new laws to staff and helps them understand the importance of a target market determination (TMD) in the DDO framework, and how financial products must be promoted and distributed in line with the TMD.