Investment Professionals

Regulations on asset managers and financial advisers have increased in number and scope over the past 10 years. Much of which has been for the better. New Design and Distribution Obligations (DDO) which came into effect on 5 October 2021 will change how many types of financial products, including ETFs, can be sold. Under the regulations, ETF Securities is both a product issuer (a company that builds funds) and a distributor (a company that sells funds). We understand our obligations under the new regulations. Which include the below. What is DDO? Put simply, it tries to make sure that fund managers are creating funds that are “fit for purpose” and built with investors’ interests in mind. It also tries to ensure that companies selling or recommending funds – including financial advisers, stockbrokers and wrap platforms – are accurately presenting them to investors. DDO covers many types of financial products—not just funds. It also covers credit cards, insurance, some superannuation, home loans—and more. It was brought into being thanks to both the 2014 Financial System Inquiry and the Hayne Royal Commission. Both found that some financial products had been badly built and sold. ...