The regulatory perspective — Product governance regime for financial products

The Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Bill 2018 was introduced into Parliament on 20 September 2018.

The bill will introduce a governance regime for the design and distribution of financial products, increasing accountability on firms.

The new regime was recommended by the Financial System Inquiry, which highlighted problems with products not meeting the needs of consumers who purchased them, and the potential for improvement in the product design phase.

The bill will also introduce a new intervention power for ASIC focussed on reducing the risk of significant detriment to consumers.

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