25 October 2021

A new ASIC regulatory requirement came into effective on 5 October 2021.

Regulatory Guide RG274, Product Design and Distribution Obligations, applies to all issuers of financial products, e.g., fund managers including KM Property Funds, and distributors of financial products, such as financial advisers. 

The new regulation requires fund managers to define the investor base and target market for their financial products.

As of 5 October 2021, KM Property Funds will include a Target Market Determination (TMD) questionnaire as part of its Product Disclosure Statement (PDS) for all new registered investment schemes, also known as retail managed funds. The TMD will help potential investors to understand the objectives, financial situation, and needs of the product’s target market, enabling investors to evaluate whether the relevant financial product is suitable for them.  

As an investor wishing to invest in a new fund offered by KM Property Funds under a PDS, you must complete the questionnaire, acknowledging you have read and understood the contents of the TMD form. By signing the TMD, you confirm that you reasonably believe you fall within the defined target market. You will not be able to bypass or ignore this legal requirement in deciding whether the property fund meets your investment requirements.

While this new regulation adds an extra step in the investment process, ASIC designed RG274 to protect investors.

For more information, please call us on 1300 132 099 or email [email protected].

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