The Australian Securities and Investments Commission (ASIC) is seeking feedback on its proposal to extend the design and distribution obligations (DDO) instrument for a further five years. 

The regulator says the instrument was initially made for a period of two years and implements measures announced by Treasury. These measures include relief for distributors from the obligation to report to product issuers if they received nil complaints during a reporting period. 

“ASIC intends to extend the operation of the instrument to retain certainty for industry ahead of any law reform,” the regulator says. 

The only changes proposed to ASIC Corporations (Design and Distribution Obligations Interim Measures) 2021/784 are to extend the instrument until the start of October 5 2028 and to remove an exemption for cashless welfare arrangements. 

ASIC says the exemption is no longer necessary following the making of the Corporations Amendment (Design and Distribution Obligations – Income Management Regimes) Regulations 2023. 

“These amendments should not have a substantive effect on the operation of the instrument,” ASIC says. 

“ASIC assessed that ASIC Instrument 2021/784, is operating effectively and efficiently, and continues to form a necessary and useful part of the legislative framework.” 

Email submissions to product.regulation@asic.gov.au by August 25.