You are now leaving Centuria Australia
and entering Centuria New Zealand.
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.
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).
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:
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 – May 2022
Centuria Diversified Property Fund – Target Market Determination – October 2021
Centuria Healthcare Property Fund – Target Market Determination – November 2022
Centuria Agriculture Fund – Target Market Determination – May 2022
Centuria Government Income Property Fund No.2 – Target Market Determination – October 2021
Centuria Government Income Property Fund No.2 – Target Market Determination – April 2023
Centuria 25 Grenfell Street Fund – Target Market Determination – February 2022
Centuria Industrial Income Fund No.2 – Target Market Determination – November 2022
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.
Our key responsibilities as a product issuer are:
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.
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.
Centuria will assess any applications that sit outside the product’s TMD and contact the investors that are not in the target market.