With the October 2021 deadline for ASIC's new product design and distribution obligations fast approaching, Morningstar has released a new solution.
"The most meaningful way to keep regulatory compliance costs low for industry participants and consumers is in the taxonomy used to describe a Target Market Determination (TMD)," Morningstar said.
"Striving for common data standards and templates across issuers will allow distributors to systematise their monitoring and reporting obligations under DDO."
Morningstar has been gathering feedback and engaging with the industry with the goal of formulating an open source standard for TMDs.
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The company said its TMD data would be backed by the 8300-unit prices daily, 4000 portfolios monthly and hundreds of PDS documents it collects and processes.
"We're leveraging this existing connectivity to keep data acquisition and integration costs manageable for participants, and ultimately minimise the impact of industry compliance on investor outcomes," Morningstar head of product and client solutions Graham Dixon said.
"Working with issuers and distributors, our goal is to ensure TMD data and document delivery is seamless, of high quality, and cost-effective to implement and maintain."
The Morningstar DDO software will support TMD document creation for issuers, TMD document collection and dissemination from issuers to industry participants and TMD data collection and dissemination.
The research house revealed plans to make the data available through its wider product suite including Adviser Research Centre, AdviserLogic, Licensee Dashboards, FinaMetrica and Morningstar Direct.