New obligations have been introduced on product issuers and distributors through the Treasury Laws amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019 which includes a requirement for Mercy Super to have a process in place to monitor, update and publish Target Market Determinations (TMD) for its products.
This legislation requires financial services product issuers to design products that are appropriate for the consumers in the target market which are consistent with their objectives, financial situation, and needs – putting members at the centre of how we design and distribute our products.
Mercy Super’s products that are affected by these requirements are:
- Super Account product for existing and past employees of associated employers and their spouses who are looking to invest for retirement through superannuation.
- Pre-Retirement Income Account product for existing Super Account members over the preservation age and under age 65 with a balance of at least $50,000. Members will be looking for access to a regular, flexible income stream, while ensuring compliance with transition to retirement regulations, including entry eligibility criteria and minimum and maximum draw down restrictions.
- Post-Retirement Income Account product for existing Super Account members who have met the eligibility requirements for the release of their superannuation savings with a Super Account balance of at least $50,000. Members will be looking for access to a regular, flexible income stream, while ensuring compliance with income stream regulations, including entry eligibility criteria and minimum draw down restrictions and includes members that are either:
- aged 65 or over
- age 60 or over and ceased or changed employment after reaching age 60
- permanently retired from the workforce after reaching their preservation age
- permanently disabled or are eligible to receive a terminal illness benefit from their Super Account.
The TMDs for each of these products can be found in the Information Hub of our website – mercysuper.com.au/target-market-determinations