Target Market Determination (TMD)

What is a Target Market Determination?

A Target Market Determination is a document which describes the type of customers who a product is appropriate for, based on their likely needs, objectives and financial situation (target market), and establishes the distribution conditions and restrictions around how the product can be distributed to customers. It also describes reporting requirements and the events or circumstances where we may need to review the Target Market Determination for a financial product.

Which products does CSC need to provide Target Market Determinations for?

ADF Super, CSCri and PSSap. CSC is not required to provide Target Market Determinations for Defined Benefit Products or for MySuper investment options. 

Why does CSC need to have Target Market Determinations?

From 5 October 2021, we (as product issuer) are required to prepare a Target Market Determination under section 994B of the Corporations Act 2001 (Cth). The Target Market Determination sets out the target market for the product, establishes distribution conditions, sets out triggers to review the target market, reporting requirements and certain other information, as required by the Act and regulations. It forms part of CSC’s Design and Distribution Framework for the product.

What is the role of a Product Distributor?

A Distributor of ADF Super, CSCri and PSSap is required to:

• Not engage in retail product distribution conduct unless a Target Market Determination (TMD) has been made for each in-scope CSC product;
• Take reasonable steps to ensure that distribution is consistent with the TMD; and
• Keep complete and accurate records of distribution information.