---
title: "Target market determination (template with statutory checklist)"
url: "https://ailawframework.com/precedents/financial-services-regulation/target-market-determination"
type: "precedent"
site: "AI Law Framework"
id: "a28-target-market-determination"
area_id: "A28"
kind: "other"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# 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…

Canonical page: https://ailawframework.com/precedents/financial-services-regulation/target-market-determination  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

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.

## Key facts

- Kind: Other. A precedent that fits none of the other kinds.
- Practice area: [Financial Services Regulation](https://ailawframework.com/precedents/financial-services-regulation.md)
- Jurisdictions: Australia
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 6 authorities it cites, for Australia.

## 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.

## Authorities

- [Corporations Act 2001 (Cth) Pt 7.8A (design and distribution obligations)](https://www.legislation.gov.au/C2004A00818/latest/text)
- [Corporations Act 2001 (Cth) s 994B (when a TMD is required and what it must contain)](https://www.legislation.gov.au/C2004A00818/latest/text)
- [Corporations Act 2001 (Cth) ss 994C, 994D (review of TMDs; prohibition on distribution without a TMD)](https://www.legislation.gov.au/C2004A00818/latest/text)
- [Corporations Act 2001 (Cth) s 994E (reasonable steps to ensure distribution is consistent with the TMD)](https://www.legislation.gov.au/C2004A00818/latest/text)
- [Corporations Act 2001 (Cth) ss 994F, 994G (distributor reporting; notifying ASIC of significant dealings within 10 business days)](https://www.legislation.gov.au/C2004A00818/latest/text)
- [ASIC Regulatory Guide 274 Product design and distribution obligations (issued 10 September 2024)](https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-274-product-design-and-distribution-obligations)

## Official form

[Official form](https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-274-product-design-and-distribution-obligations)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/financial-services-regulation/target-market-determination and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*