Financial services utility, APIR Systems, will be conducting a pilot program this week to showcase its ability to house a centralised Target Market Determination (TMD) repository ahead of the impending Design and Distribution Obligations (DDO) legislation.
The legislation, which is being overseen by the Australian Securities and Investments Commission (ASIC), is scheduled to come into effect from 5 October this year, impacting issuers and distributors of financial products. TMDs are a requirement for all financial products captured under the Design and Distribution Obligations (DDO), which will place the onus of responsibility on product issuers and platform providers to ensure products are suitable for the market being distributed to APIR chief executive, Chris Donohoe, says APIR is one of few service providers in the market with existing infrastructure to accommodate the new TMD obligations.
“We have a number of leading Australian financial services organisations on board with the pilot program. That they have come on board to assist with proving our offering is testament to the strength of our existing capabilities. “
“The industry should have access to the one central service where they can upload their TMD information seamlessly and efficiently. As this is an extension of our current service offering, APIR participants will not incur any additional costs for the service. It is simply a centralised repository of information that issuers and distributors can access in meeting their DDO,” he says.
Mr Donohoe says engagement with industry stakeholders throughout the consultation process has been productive. Our clients are delighted to see a functional solution close to implementation, with APIRs go live expected in the weeks following the finalisation of industry data standards.
“Distributors don’t want a system – or multiple systems – introduced last minute. It’s important for TMD information to be uploaded and accessed in an orderly, efficient manner. For this to happen, logically, there can only be one centralised repository available to the market,” he says.
While APIR’s service currently covers managed funds, managed accounts and superannuation products, the service could be easily expanded to include other banking and insurance products that are required to have TMDs.
“We will be able to assist our current and prospective clients with meeting the new legislation requirements and establish market best practice. It’s a good example of using tech innovation to solve an industry problem,” he said.
APIR’s pilot program is set to launch in May, with feedback from participants then forming the next phase of the process.
