Target Market Determinations

According to the Australian Securities and Investments Commission (ASIC), “The design and distribution obligations are intended to help consumers obtain appropriate financial products by requiring issuers and distributors to have a consumer-centric approach to the design and distribution of products.”¹

The design obligations require an issuer of a financial product to consider the design of their products, including the key attributes, and determine an appropriate target market. The distribution obligations require the distributor of a financial product to take reasonable steps to ensure a product is distributed consistently with the “Target Market Determination” (TMD).

Simply put, ASIC introduced these obligations to ensure that the financial products you buy will suit your needs; and if they don’t, we’ll say so – as we’ve always done!

It also means that Woolworths Team Bank (and other institutions like us) will continue to review our products on a regular basis to ensure their suitability to Team Members.

A Target Market Determination outlines all of the following:

• the target market of the product (i.e. who the type of person is that we intend to buy this product, and what their financial circumstances are);
• how we distribute this product (e.g. online, in person through our bank branches, via a partner’s website);
• the conditions in which we will conduct a review of the product (e.g. annually, if there is a material change made to how it functions).

It is a document we created for all our products. Additionally, if we’re distributing a product on someone else’s behalf, we will publish or direct you to another issuer’s TMD.

It’s an incredibly useful document to help you determine whether a certain product is right for you: a decision only you can make.

As of 5 October 2021, all issuers and distributors of financial products are obligated to comply with the design and distribution obligations in Pt 7.8A of the Corporations Act 2001 (Corporations Act) set out by ASIC. This means producing and publishing these TMD’s.

At Woolworths Team Bank, we feel it’s an exciting step forward in safeguarding all Australians. It is critically important to us that no team member ever takes out a product that isn’t suitable to them. We’re passionate about finding you products to fit your needs now and into the future, which is why we’re happy to be strictly abiding by the DDO.

1. ASIC (December 2020), Regulatory Guide 274 Product Design and Distribution Obligations