On 23 October, the Government released for public consultation exposure draft regulations to support the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Bill 2018 and a draft Explanatory Statement.

According to the draft Explanatory Statement, the purpose of these draft regulations is to enhance the design and distribution obligations and product intervention regimes by altering the products and persons in relation to which the design and distribution obligations regime applies and the products that may be subject to a product intervention order by ASIC.

According to the Assistant Treasurer, the Hon Stuart Robert MP, the regulations support the Government’s proposed reforms which are designed to ensure that financial products are targeted and sold to the right consumers and allow ASIC to intervene where there is evidence of significant detriment to consumers.

Consultation closes on 13 November.