• We must make a Target Market Determination (TMD) for all of our retail products available for investment, except for closed retail products. Like-for-like reinvestments and rollovers of our retail products aren’t subject to TMD requirements.
• We must take reasonable steps so that distribution is consistent with the most recent TMD.
• We must make our TMDs available to the public free of charge.
• We must review the TMDs to ensure they remain appropriate.
• We must notify ASIC of any significant dealings in a product that are not consistent with the product’s TMD.
• We must specify distribution information that distributors must collect, keep and report back to the issuer.
• We must maintain records and information relating to our obligations under the regime.

• You must consider the Target Market Determination (TMD) when giving personal advice to help meet your best interest duty. 
• You must notify a product issuer of a significant dealing in a product that is not consistent with the product’s TMD. This does not prevent you from recommending the product if it is appropriate for your client.
• You need to provide to us details of the complaints about our products and any other distribution information specified in the TMD relating to the product.
• You must maintain records and information relating to your obligations under the regime. You must keep records of this distribution information (e.g. the number of complaints and any other information specified in the target market determination) for up to seven years.
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^{* Other responsibilities may apply where you are not providing financial advice.}

From 5 October 2021, financial product issuers and distributors (including Licensees and financial advisers) need to comply with the Design and Distribution Obligations (DDO), which are a customer-centric approach to the design and distribution of financial products. These obligations are intended to help customers obtain the financial products that are appropriate for them.
 

For more details, read the Regulatory Guide 274 - Product design and distribution obligations.

Issuers and distributors covered under the Design and Distribution Obligations as the below.

Product issuers include persons who:

• issue a financial product; and
• must prepare PDS and TMD disclosure documents.
   

Product issuers include Challenger, for example.

Product distributors generally include “regulated persons”, which may include AFS licensees, authorised representatives, various platform providers, among others.

From 5 October 2021, issuers and distributors (including financial advisers) of financial products need to comply with the product design and distribution obligations.

Challenger will start to implement changes to our documentation (including product application forms) from 30 August so advisers can be familiar with the new forms and questions ready for 5 October 2021.

A Target Market Determination (TMD) is a document that describes who a product is designed to be appropriate for, how the product can be distributed, and when the TMD themselves should be reviewed. All of Challenger's retail products available for investment, except for closed retail products, will have an associated TMD. Like-for-like reinvestments and rollovers of our retail products aren’t subject to TMD requirements.

The Target Market Determination can be found here, along with the relevant Product Disclosure Statement for each retail product available to new investors.