On 5 October 2021, the new Design and Distribution Obligations regime will be introduced for product issuers and distributors of a range of financial products, including life insurance.
The Design & Distribution Obligations are intended to help consumers obtain appropriate financial products by ensuring issuers and distributors have a consumer-centric and consistent approach to designing, distributing, monitoring, and reviewing products.
As part of this change, as a product issuer, we have developed Target Market Determinations (TMDs) that define and describe the intended target market for our products.
What is a Target Market Determination (TMD)?
A TMD is a document that describes a product or a group of products, who the product is intended for (target market), and any conditions around how the product can be distributed to consumers. It also describes the events or circumstances where, alongside our periodical review schedule, we may need to review a TMD to ensure it remains appropriate for the target market.
A TMD specifies:
- the type of consumer in the target market
- any distribution conditions and restrictions
- assessment information we will use and review triggers (events that reasonably suggest the TMD is no longer appropriate)
- when TMDs must be reviewed
- reporting periods for when the distributor should provide complaints to the product issuer, and
- what other information distributors must report to the issuer (and frequency) so the issuer can identify whether the TMD needs to be reviewed.
MLC Life Insurance TMDs
Below is a list of our Target Market Determinations. In some cases, more than one product is grouped under a TMD. Where the product will be owned by NULIS as trustee and issued to the customer as a member of the MLC Super Fund, both the MLC Limited issued TMD and the NULIS issued TMD will apply.
On sale: Retail Advised Product TMDs
|Non-super and super products with a PDS issued by MLC Limited||Super – products issued and owned by NULIS as trustee|
|MLC Insurance and MLC Insurance Super TMD||MLC Insurance Super TMD - NULIS|
Off-sale: Retail Advised Product TMDs
|Non-super and super products with a PDS issued by MLC Limited
||Super – products issued and owned by NULIS as trustee|
|Personal Protection Portfolio and Life Cover Super TMD
||Life Cover Super TMD - NULIS
|Protectionfirst inside and outside super TMD
||Protectionfirst Super TMD – NULIS
|Whole of Life TMD|
|MLC Term Insurance TMD|
|MLC Endowment TMD|
|MLC Pure Endowment TMD|
Direct Product TMDs
|MLC Debt Insurance TMD||MLC Essentials and NAB Essentials TMD|