Other · Financial Services Regulation
Target market determination (template with statutory checklist)
Template target market determination covering product attributes, the target market, consistency reasoning, distribution conditions, review triggers and periods, distributor reporting and significant dealings, with a checklist against Corporations Act s 994B.
- Kind
- Other. A precedent that fits none of the other kinds.
- Where it applies
- Australia
- AI use
- Yellow AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at
- 17 October 2026
- Status
- Maintained. Checked on 17 October 2026 against the 6 authorities it cites, for Australia.
- Version
- 1
- Source
- Written for this library
When to use it
Use when an issuer or regulated seller must make a TMD before retail distribution of a financial product that needs a PDS or disclosure document, or a credit product caught by the design and distribution obligations. Not needed for products excluded by s 994B(3), such as MySuper products and most ordinary shares.
How AI may be used
AI can extract product features, fees, risks and channels and draft target-market descriptions, but the issuer must judge whether the product is likely to be consistent with the likely objectives, financial situation and needs of the target market.
AI may
- Extract product terms, fees, risks and distribution channels from the product documents into a product-governance table.
- Draft first-pass target-market descriptions and review triggers from the product data for the issuer to test.
- Compare an existing TMD against the s 994B(5) checklist and list missing elements.
AI must not
- Must not decide who is in or outside the target market or whether s 994B(8) is satisfied.
- Must not set review periods or reporting periods; s 994B(6) requires them to be reasonable, which is a judgment.
- Must not reuse another issuer's published TMD wording as if it described this product.
The lawyer checks
- Each element required by s 994B(5) is present and specific to this product.
- Distribution conditions match how the product is actually sold, including digital and AI-driven channels.
- Review triggers and data requests can actually be monitored by the issuer and its distributors.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Official form
Open the official form. Always use the current version from the issuer.
Read the full text
The full text is for signed-in accounts. It is free. When you sign in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
More in Financial Services Regulation
- Reportable situation (breach) report to ASIC: assessment worksheet and completion guide
- Client notice for AI-assisted or digital financial advice
- AFS or credit licensee AI governance policy
- Responsible lending unsuitability assessment record (credit providers)
- Internal dispute resolution (IDR) final response letter, with delay notification
All precedents for Financial Services Regulation · Tasks and AI use in this area