APIR Systems has launched a new tool which will help provide clients to store target market determinations (TMDs), ahead of the design and distribution obligations (DDO) legislation which will come into effect from 5 October.
APIR’s chief executive, Chris Donohoe, said the focus of its TMD program would be on the broader market rollout after the successful pilot programme.
“APIR is in the fortunate position of being able to leverage off our existing industry connectivity to deliver a simple and scalable solution. We’re one of few service providers in the market with existing infrastructure and capability to accommodate the new TMD obligations,” he said.
“With APIR, the industry will be able to access a single centralised service where TMD information can be uploaded seamlessly and efficiently via a range of connectivity options. It is simply a centralised repository of information that issuers and distributors can access in meeting their DDO.”
APIR service, which currently covers managed funds, managed accounts and superannuation products, could be easily expanded to include other banking and insurance products that would be required to have TMDs, Donohoe said.
TMDs were a requirement for all financial products captured under the DDO, which would place the onus of responsibility on product issuers and platform providers to ensure products are suitable for the market being distributed to.
The DDO legislation was being overseen by the Australian Securities and Investments Commission (ASIC) and would impact issuers and distributors of financial products.