Industry Super Australia (ISA) appreciates the opportunity to provide feedback on the draft Corporations Amendment (Design and Distribution Obligations) Regulations 2019. The Regulations alter the products and persons in relation to which the Design and Distribution Obligations (DDO) apply.
ISA supports the proposed draft Regulations but considers that the coverage of the DDO should be extended to self-managed superannuation funds (SMSFs). Applying the DDO to SMSFs:
• Is consistent with the objective of the regime which is to promote the responsible
distribution of financial products and can help prevent the sale of SMSFs to consumers
for whom they are not and may never be appropriate
• Will help ensure that superannuation monies are used to save for retirement and not as
a way to invest in a specific asset such as property or to save tax.
You can read the full submission below.