Iress has announced it will deliver an industry-wide solution to meet the upcoming design and distribution obligations (DDO) legislation, which will come into effect on 5 October, 2021.
The DDO was set out in Regulatory Guide 274 and instructed how financial services organisations could distribute and market products.
Michael Blomfield, Iress’ chief commercial officer, said the impact of this legislation was broad and multi-dimensional and there was currently no industry-wide solution for the distribution, storage, and management of target market determinations (TMD) or a mechanism to coordinate complaints and reporting obligations.
“We believe an industry-wide technology-based solution is required to materially reduce the complexity and cost of building and managing DDO obligations for the industry,” Blomfield said.
“The breadth and interconnectedness of this regulation requires almost every part of the industry to find a cost-effective and scalable way to forge connections in what is a relatively short space of time.”
The firm said it was well advanced in delivering a solution ahead of when the obligations come into effect.
“During 2020 we successfully brought together multiple stakeholders to define an industry advice fee consent solution,” Blomfield said.
“DDO is the natural next application of this solution, to allow for the distribution, storage and management of TMDs and complaints.
“Iress has significant experience in the collection and distribution of managed fund data. We’ve also previously helped clients meet similar obligations in the United Kingdom and Europe through the MiFID II legislation.”