DDO
Design products for the right customers
The design and distribution obligations in Part 7.8A of the Corporations Act 2001 have applied since 5 October 2021. Issuers must design financial and credit products that are likely to be consistent with the objectives, financial situation and needs of their target market, set that out in a target market determination, and take reasonable steps so distribution is consistent with it. Distributors must take reasonable steps too.
ASIC has made the DDO a priority, using stop orders against products and distribution that miss the mark. We help you get your framework, TMDs and distribution controls right, in a way your product and distribution teams can actually run.
Who we act for
Advice for issuers and distributors
Lenders and credit providers
TMDs and distribution controls for home loans, personal loans, credit cards and other credit products.
BNPL and fintech providers
New products and digital distribution channels designed with the DDO built in.
Product issuers
Governance frameworks, monitoring and reporting across your product range.
Distributors
Understanding your obligations, reporting to issuers and reviewing distribution agreements.
How we help
Our DDO services
- Advice on whether your products and distributors are covered by the DDO
- Target market determinations for new and existing products, and TMD templates
- DDO governance frameworks, policies and compliance checklists
- Distribution conditions and controls that fit your channels
- Reviewing and amending distribution and delegation agreements
- Review triggers, monitoring and complaints data processes
- Significant dealing notifications to ASIC
- Responding to ASIC notices, surveillances and stop order concerns
- DDO training for boards, product and distribution teams
- Reviewing advertising and marketing material against your TMD
Selected work
Recent DDO matters
Macquarie Bank
During his time at Macquarie Bank, AJ Sridaran was one of the lead senior lawyers advising the bank on its design and distribution obligations.
DDO policies and stop orders
Michael Lazar has worked with many large financial institutions and lenders on their DDO policies, and on responding to ASIC interim stop orders.
Design and distribution
Advised a financial services client on its design and distribution obligations and drafted its target market determination templates.
Advertising
Drafted advertising guidelines for a financial institution to implement across its marketing.
Why Hindsight
Why clients choose us
We’ve sat on the bank’s side
We’ve worked inside major banks, so we know how compliance actually works in a large organisation.
Built for how you distribute
We design controls around your real channels, from brokers to apps.
Partner-supervised, every matter
Every matter is supervised by one of our Founding Partners.
Clear scope and fees
We agree the scope and fees with you upfront, and charge fixed fees wherever we can.
Our partners
The team behind your DDO framework
Our DDO work is led by our Founding Partners. AJ Sridaran was one of the lead senior lawyers advising Macquarie Bank on its design and distribution obligations, and Michael Lazar has worked with many large financial institutions and lenders on their DDO policies and on ASIC interim stop orders.
Michael Lazar
Founding Partner
Formerly NAB and Dentons. Advises banks, credit providers and SMSF lenders on regulation and structuring.
AJ Sridaran
Founding Partner
Formerly Macquarie Bank and Dentons. Legal 500 ‘lawyer to note’ in fintech and financial services regulation.
Recognised by the Legal 500 and Lawyers Weekly
Meet our partners →FAQs
Frequently asked questions
Do the DDO apply to credit products?
Yes. The DDO apply to most consumer credit products, including home loans, personal loans, credit cards and buy now pay later, as well as many investment and insurance products.
What is a target market determination?
A TMD is a written document that describes the class of customers a product is designed for, any conditions on how it can be distributed, and when the issuer must review it. It must be in place before the product is distributed to retail clients.
What happens if we get it wrong?
ASIC can issue stop orders that prevent a product being offered or distributed, and breaches can attract civil penalties. ASIC has used stop orders across a range of products, and our partners have helped clients respond to them. See our article on ASIC’s interim stop order against Fidante.
We’re a distributor. What do we need to do?
Distributors must take reasonable steps so their distribution is likely to be consistent with the TMD, keep records, and report complaints and other information to the issuer. We can review your processes and distribution agreements.
Can you train our team?
Yes. We run practical DDO training for boards, product, marketing and distribution teams.
Talk to us
Need help with your DDO obligations?
Whether you’re launching a product or reviewing your framework, book a call and we’ll tell you what you need to do and what it will cost.