What is a Target Market Determination?

A Target Market Determination (TMD) describes who the product may be suitable for, based on likely needs, objectives, and financial situation.

It also sets out who can distribute our products, how they can do this, and situations when we may need to review our products and the target market.

A Target Market Determination does not replace disclosure documents. You should continue to refer to the relevant disclosure documents before deciding whether or not to acquire a product.

Why do we have Target Market Determinations?

The Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019 requires us to have Target Market Determinations  to ensure that we’re ‘getting it right for customers’ – putting you at the centre of how we design and distribute our products.

Target Market Determinations

You can view and download our Target Market Determination documents below.

Personal banking

Business banking

Investment banking

Corporate & Institutional

If you require a copy of a historical TMD or one that has ceased to apply, please contact your Relationship Manager within NAB. If you are unsure of your Relationship Manager, please call NAB on 13 22 65

Information for Distributors

  • DDO requires distributors engaging in retail product distribution conduct to take reasonable steps to distribute NAB products to their intended target market and to report certain information to NAB.

    NAB actively monitors its products to ensure reviews of our products and their distribution are readily undertaken when needed. Reporting from product distributors play a significant role to ensure our products continue to be fit for purpose.

    Distributors are required to report to NAB, information about significant dealings, complaints or feedback they have received about our products. In addition to these, the TMDs may also outline other information required in the reporting requirements.

    These reports need to be received by NAB within specified reporting timeframes as set out in the TMDs.

  • Contact your Relationship Manager within NAB.

    If you are unsure of your Relationship Manager, please call NAB on 13 22 65

Design and Distribution Obligations (DDO)

  • Effective from 5th October 2021, Design and Distribution Obligations (DDO) require the issuers and distributors of financial products to have a consumer-centric approach to designing and distributing products. It is intended to assist customers in obtaining products appropriate to their needs, objectives and financial situation.

    For further information about DDO, see:

    • Regulatory Guide 274 Product design and distribution obligations
    • Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019
  • Under the DDO legislation, issuers include persons who:

    • issue a financial product; and
    • must prepare a disclosure document under the Corporations Act.
  • The design obligations applicable to issuers include requirements to:

    • make a target market determination and make it publicly available;
    • review the target market determination for appropriateness;
    • keep records about the target market determination; and
    • notify ASIC about significant dealings in respect of the target market determination.
  • Under the DDO legislation, a distributor means regulated persons, including:

    • AFS licensees;
    • authorised representatives;
    • credit licensees; and
    • credit representatives.
  • Distribution means ‘retail product distribution conduct’ in relation to a consumer, comprising:

    • dealing in the financial product;
    • giving a disclosure document in relation to offering a financial product;
    • providing a PDS; and
    • providing financial product advice.
  • The distribution obligations applicable to distributors include requirements to:

    • not engage in retail product distribution without a target market determination;
    • not engage in retail product distribution where a target market determination may no longer be appropriate;
    • take reasonable steps so that distribution is in accordance with the target market determination;
    • collect, keep and provide distribution information; and
    • notify the issuer of any significant dealings inconsistent with the target market determination.
  • A TMD is not a consumer-facing disclosure document and there is no requirement for product issuers or distributors to provide a copy of a TMD to a customer.  Under the DDO legislation, a product issuer must ensure that its TMDs are publicly available free of charge before it distributes any product.

Important information