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Regtech & Meeting the DDO Obligation

Thursday 26 August 2021


This week was the penultimate RegTech Liaison for the year, which had over 100 attendees. 

In her opening address of ASIC commissioner Cathie Amour highlighted that yet again this gathering would look at the barrier and opportunities of using technologies to help meet regulatory expectations and monitoring.

With the Design and Distribution Obligations (DDO) is one of the important regulatory changes ASIC announced as in the early month of august and the of the issues that was the highlighted in the Royal Commission. 

At the end of last year, the Australian securities and Investment commission released RG 274 Product Design and Distribution Regulatory Guide. 

At the release of the guide this mean that financial services would need to pay closer attention to to their target market determination (TMD). 

The then Acting Chair said in formal statement, “‘The design and distribution obligations are a game changer. They are designed to embed a consumer-centric approach and assist industry to deliver better outcomes for consumers while managing non-financial risks and avoiding costly remediation.”

A discussion panel during the Regtech Liaison panel the addressed the way that regulatory technology (RegTech) can help organisations meet this among other obligations. 

GRC Solutions CEO Julian Fenwick noted that some organisations have some concerns about ‘Gray Areas’ of getting close to the TMDs. And this would especially be a challenge for small to medium businesses.  

Skyjed founder Leica Ison spoke about the pitfalls of companies waiting for industry wide catch-all solution. 

The panel collectively highlighted few key barriers to meeting regulatory expectations and choosing an appropriate the tech solution:

  •  Lack of skilled staff
  • Lack of time
  • Lack of resources
  • Legacy system paralysis
  • Holding out for catch-all end-to-end solution
Internal dispute Resolution
Panellists from the ASIC Regtech Liaison meeting Anna Martin form PWC also highlighted that the DDO is not only thing 5n October deadline, but this also shared deadline with the Internal Dispute Resolution. 

RG 271 which was release last July will come into effect in few months’ time.