Lonsec is pleased to advise that we are supporting the Design and Distribution (DDO) process by making Target Market Determinations (TMDs) available via iRate®, for the funds that we rate. You will be able to access the TMDs within iRate® when the rules become effective on 5 October 2021.
As a Distributor, we are required by the Regulator to ensure products that are rated have a TMD in place. We are working with Product Issuers to collect the TMDs, however, it may take us some time to collect, check and provide all of them to our users. Issuers are not required to provide these until the implementation date of 5 October and we will make the TMDs available as soon as possible thereafter.
If we do not receive a TMD from an issuer prior to the 5 October deadline, we will need to place the product on Fund Watch until the TMD is received. This is a regulated requirement of the new rules. We are working with Product Issuers to try to keep this to a minimum and will let you know which funds are placed on Fund Watch for DDO via a special section of the Daily Bulletin and when you log into iRate®.
We know that many groups rely on Lonsec’s high conviction research to support their Approved Product List (APL), we ask that you note that any Fund Watch associated with the DDO is likely to be short-term and reflects only the delay in receiving the TMD. Please share this information with all the advisers in your network. Any Fund Watch arising from other non-DDO related matters will continue to be communicated as normal.
We are committed to helping all our clients access the information they need to manage their clients’ portfolios, so if you have any further queries about our DDO obligations or how they may affect you, please contact your BDM or Client Services.
IMPORTANT NOTICE: This document is published by Lonsec Research Pty Ltd ABN 11 151 658 561, AFSL No. 421445 (Lonsec). Please read the following before making any investment decision about any financial product mentioned in this document.
Disclosure as at the date of publication: Lonsec receives fees from fund managers or product issuers for researching their financial product(s) using comprehensive and objective criteria. Lonsec receives subscriptions for providing research content to subscribers including fund managers and product issuers. Lonsec receives fees for providing investment consulting advice to clients, which includes model portfolios, approved product lists and other advice. Lonsec’s fees are not linked to the product rating outcome or the inclusion of products in model portfolios, or in approved product lists. Lonsec and its representatives, Authorised Representatives and their respective associates may have positions in the financial product(s) mentioned in this document, which may change during the life of this document, but Lonsec considers such holdings not to be sufficiently material to compromise any recommendation or advice.
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