An issuer who must prepare a PDS or disclosure document (or who issues or sells certain other products to retail clients, or is required by regulation) makes a target market determination before anyone engages in retail product distribution conduct (offence and civil penalty), except for excluded products such as MySuper products, margin lending and ordinary shares. The TMD is in writing and describes the class of retail clients in the target market, distribution conditions, review triggers, the maximum periods to the first and later reviews, the complaints reporting period, and the information distributors must report and when; the periods must be reasonable. It must be appropriate: product issued under the distribution conditions would likely reach the target market, and for the target market would likely be consistent with their likely objectives, financial situation and needs. The issuer makes the TMD publicly available free of charge (s 994B(9), offence and civil penalty). ASIC RG 274 (September 2024) sets out ASIC's expectations of product governance arrangements as guidance.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.