ASIC is inviting industry feedback on a proposal to extend the operation of the ASIC Corporations (Design and Distribution Obligations Interim Measures) 2021/784 instrument for a further five years. 

The instrument was initially made for two years and implements measures announced by the Treasury. These include relief for distributors from the obligation to report to product issuers if they received nil complaints during a reporting period. 

ASIC intends to extend the operation of the instrument to retain certainty for the industry ahead of any law reform.

The regulator assessed that ASIC Instrument 2021/784, is operating effectively and efficiently and continues to form a necessary and useful part of the legislative framework. 

The only changes proposed are to: 

  • Extend the expiry of the instrument until the start of 5 October 2028; and 
  • To remove an exemption for cashless welfare arrangements that are no longer necessary following the making of the Corporations Amendment (Design and Distribution Obligations – Income Management Regimes) Regulations 2023. 

These amendments will only have a minor effect on the operation of the instrument. 

ASIC is seeking feedback on the proposal, including whether any amendments to the instrument are required. Submissions close on 25 August 2023. 

The DDO require firms to design financial products to meet the needs of consumers, and to distribute their products in a more targeted manner. The obligations were passed by Parliament in 2019 following a recommendation of the Financial System Inquiry, and firms were required to comply from 5 October 2021.