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Design & Distribution Obligations (DDO)

The Design and Distribution Obligations (DDO) regime is a mandatory government legislation that will have an affect on all issuers that offer and distribute retail financial products. This new ASIC requirement will impact the process of investing with Centuria directly or indirectly via your investment platform.

We’re currently working through our obligations as both an issuer of financial products and as a distributor to our direct investors. We are also working through how we’re going to work with third party distributors of our products to meet these new requirements.

As we work through these new requirements, we’ll update the information on this page so stay tuned for more detail on our proposed approach.

Note Wholesale investments are not covered by this legislation.

What is DDO?

By October 2021, the Product Design and Distribution Obligations (DDO) require the issuer of a financial product to determine that there is an appropriate target market for its product(s) and ensure that its products have key attributes which are likely to be consistent with the likely objectives, financial situations and needs of a class of consumers to whom the product is targeted.

DDO also sets out the ‘reasonable steps’ that must be taken for the distribution of a financial product by both the issuers and distributors of financial products to ensure that the product is distributed to investors who fall within the Target Market Determination (TMD).

What is a Target Market Determination (TMD)?

As a product issuer Centuria is required to make a target market determination (TMD) for a product. The TMD must be in writing and must clearly set out details relating to the target market which the financial product will be offered. The DDO requirements are intended to help consumers obtain appropriate financial products by requiring issuers and distributors to have a consumer-centric approach to the design and distribution of products.

Therefore it’s our responsibility to create a TMD for each of our products offered that:

Describes the Target Market: outlines the likely objectives and needs of customers the product has been designed for.
Establishes Distribution Conditions: details the conditions or restrictions on the sale of the product.
Establishes Reporting Requirements: sets out the relevant information that must be provided to us by distributors at our required frequency.

TMD Files

A TMD, issued for a specific product, is a document which describes the target market for whom the product is likely to be consistent with their objectives, needs and financial situation. Each TMD also details any distribution condition and circumstances where we might have to review the target market determination for a particular product.

For you as an investor we have included a number of filtering questions that every investor will be required to answer to simply ensure that our products are suitable for you as an investor.

Centuria Diversified Property Fund – Target Market Determination – December 2023

Centuria Healthcare Property Fund – Target Market Determination

Centuria Agriculture Fund – Target Market Determination

Centuria LifeGoals – Target Market Determination

Centuria Industrial Income Fund No.2 – Target Market Determination

TMD Definitions

FAQs

Here are some frequently asked questions we have included following recent enquiries around DDO and the TMD requirements. For any other questions please contact us using the details below.

1. What are key obligations for Centuria as a product issuer?

Our key responsibilities as a product issuer are:

to create and maintain the TMDs for all our products that are covered by DDO
to take reasonable steps to ensure our products are distributed in line with those TMDs.

2. How does DDO impact me as the investor?

There is no impact to the investor in terms of additional documentation that the investor has to provide. The only difference is the application process, which now includes a number of target market related questions that every investor will be required to answer.

3. How does Centuria determine whether an investor is within the product’s TMD?

During the application process the investor will have to answer a number of target market related questions to determine if they are in the product’s target market. These questions cover your understanding of key features and risks associated with the product.

4. What occurs to my application if I am outside the product’s TMD?

Centuria will assess any applications that sit outside the product’s TMD and contact the investors that are not in the target market.

Who can I contact if I have additional questions?

For Centuria Property Funds please contact contactus@centuria.com.au

For Centuria LifeGoals Investment Bonds please contact enquiries@centuria.com.au