Consumer groups have commented on ASIC’s Consultation Paper 325 – Product design and distribution obligations. We strongly support the introduction of product design and distribution obligations (DDOs).
If implemented effectively, these obligations should significantly reduce mis-selling of financial products in Australia, and improve the quality and suitability of products sold to consumers. DDOs principles send the right message to financial firms that consumer interests should be considered throughout the entire product life cycle and help to ensure suitable product design is embedded in individual firms.
We have made a number of recommendations throughout this submission to strengthen the draft DDO Regulatory Guide. Importantly, we have suggested a number of additional product examples be included in the Regulatory Guide, such as buy now pay later, payday loans, consumer leases, point-of-sale lending and funeral expenses policies.
Read the full submission [here]200325 Submission - ASIC CP 325 product design and distribution obligations_FINAL