Overview of Design and Distribution Obligations (DDO)

ASIC introduced the Design and Distribution Obligations (DDO) regime on 5 October 2021.

This is a mandatory piece of legislation that applies to all product issuers (e.g. Morningstar) and distributors of financial products to retail customers.

What you need to know

Morningstar managed funds

• When recommending a financial product to a retail investor, you’ll need to ensure the investor meets a ‘target market’ of consumers for the financial product. To do so, you’ll need to reference our ‘target market determination’ at morningstarinvestments.com.au/tmd
• If you recommend a financial product to a retail investor that does not meet the ‘target market’ of consumers, you’ll need to report this to us at morningstarinvestments.com.au/distributor-report
• You’ll need to report any complaints your clients have about Morningstar (regarding our products, staff or the way in which we handled a complaint). To do so, you can use the same link above at morningstarinvestments.com.au/distributor-report

Morningstar managed accounts

As Morningstar managed accounts are issued through third-party platform providers, you’ll need to refer to the relevant platform’s ‘target market determination’.

• When recommending a financial product to a retail investor, you’ll need to ensure the investor meets a ‘target market’ of consumers for the financial product. To do so, you’ll need to reference the ‘target market determination’ from your platform provider of choice.
• If you recommend a financial product to a retail investor that does not meet the ‘target market’ of consumers, you’ll need to report this to your platform provider of choice.
• You’ll need to report any complaints your clients have about Morningstar (regarding our products, staff or the way in which we handled a complaint). To do so, you can use the same link above at morningstarinvestments.com.au/distributor-report

For more information, including the background to the legislation and frequently asked questions, please visit our dedicated DDO information page at www.morningstarinvestments.com.au/ddo

Please get in touch with your relationship manager if you have any feedback or questions.

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