The looming deadline of Target Market Determinations: Don’t wait until it’s too late

Learn why you should avoid the last-minute rush and how to take action now

As the new year is well underway, there is a new elephant in the room – Target Market Determinations (TMDs). At least one TMD is required for every financial product, and sets out the target market, product specs and other information required by distributors.

Due on October 5, 2021 with no wiggle room, TMDs must be available on the issuer’s website as well as in the hands of all distributors in good time. The consequence of fines and products being pulled until TMDs are produced should be motivation enough, but there are additional reasons to avoid the last-minute rush.

Pain points to consider

Sarah Penn, Founder and CEO, Mayflower Consulting provided some key points for people to think about with completing TMDs earlier rather than later:

“You want to make sure that each TMD is actionable and reasonable. There’s no point in coming up with a big list of requirements if a distributor is unlikely to be able to implement them. As a result, it will be very valuable for issuers to talk to distributors well in advance.”

“From a funds management perspective, some of these products have been around for 30 years, so to suddenly come up with a TMD is quite tricky, but it still needs to be done. Plus there’s the sheer volume to contemplate – some issuers will have hundreds of TMDs to produce in the next seven months. The FSC will be providing a range of templates, but issuers still need to think carefully about the contents.”

“It’s also important to note that TMDs are supposed to be living documents that are reviewed and updated over time, which again becomes a driver to consider a technology solution now so that the process can be managed smoothly in future.”

It’s also important to note that TMDs are supposed to be living documents that are reviewed and updated over time, which again becomes a driver to consider a technology solution now so that the process can be managed smoothly in future.

Sarah Penn

Founder and CEO - Mayflower Consulting

Another pain point is ensuring consistency between the PDS (Product Disclosure Statement) and the TMD.

“A single source of truth is really helpful for making sure that all product related disclosure uses consistent wording – which Objective Keystone definitely supports.”

Take action now and plan with a system in mind

When it comes down to it, there is no doubt that technology makes a world of difference when approaching TMDs and other disclosure. Technology like Objective Keystone can not only assist with managing pain points, but also deliver powerful automation and risk management.

Here’s why you should consider using Objective Keystone for your TMD management:

  • Get TMDs done right – Objective Keystone can improve accuracy with version control, verification records and a single source of truth.
  • Get them done early – Accommodate for unforeseen circumstances or time to review each TMD with distributors.
  • Free up time and resources – Reduce stress and save time to work on other areas of the business.
  • Reduce risk – With an audit trail and less people involved, the opportunity for transposition and other errors decreases.

“From our perspective, Objective Keystone is the system – the only system – that we recommend to clients, and we have looked at everything else on the market in detail. Objective Keystone is the only system that brings together the authoring and the verification and the publishing all in one place. Without all three together, you are still going to waste a lot of time which could be put to better use, as well as expose your business to undue risk,” Sarah said.

From our perspective, Objective Keystone is the system – the only system – that we recommend to clients, and we have looked at everything else on the market in detail. Objective Keystone is the only system that brings together the authoring and the verification and the publishing all in one place.

Sarah Penn

Founder and CEO - Mayflower Consulting

To find out more about how Objective Keystone can assist with TMDs contact us or download the infographic.