It’s not the most user-friendly name, but target market determinations (TMDs) are about something you probably care about deeply – you. In short, TMDs tell you if a financial product such as a super fund is designed with you in mind.
Target market determinations were introduced as part of design and distribution obligations for the issuers of financial products from 5 October 2021. If you haven’t come across one before, it’s worth understanding their purpose and why they matter.
What is included in a TMD?
A target market determination is a document that must be prepared by the product issuer for all financial products that are captured in the design and distribution regime, from bank accounts to super funds, managed investments and insurance. It describes the type of customer a product is likely to be suitable for.
