ASIC 2024 Update - Funds Management

Product design and distribution - ASIC have provided three example areas for improvement from their report 795: they observed limited due diligence arrangements around the selection and supervision of third-party distributors; poor-quality consumer questionnaires; and limited monitoring of consumer outcomes.

It is important that issuers recognise that not all consumers who are interested in a product necessarily fall within its target market. Issuers should take care to ensure online marketing strategies are aligned with their target market determinations (TMDs), including in their selection of keywords to direct advertising to consumers.

Affected businesses should remain vigilant on DDO requirements and ensure recommendations from ASIC report 795 have been considered.