Applause for our financial services clients!

Why are we applauding our financial services clients?

The financial services that many organisations provide to their customers are complex. These services can be difficult to understand and even harder to explain.  Some organisations have recognised this complexity, and have done all they can to ensure that their customers knew what they were buying. The regulations required them to offer a PDS or Prospectus, but they went over and above what was specifically asked for. They tested their documentation with customers.  (This is called 'consumer testing').  Those of our clients who did this - we applaud you!

Unfortunately for their customers, some other organisations treated their obligations with token compliance. They defended this token compliance with arguments like:

After the Banking Royal Commission we know that token compliance isn't good enough. The Government has now taken a further step to help, by passing the 

Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019

What does this new law mean?

Certain financial services organisations now have two years to make sure that the products they design and/or distribute must be designed for a specific target market.  The organisation has to take into account such things as:

Some tips on how to do this

The key to all of this is understanding your customer or user.  We've got your back on this. Contact This email address is being protected from spambots. You need JavaScript enabled to view it.to find out more.

Tags: Disclosure, Consumer testing, Compliance, Design and distribution obligations

Print