DISC 2A.2 Obligations on manufacturers at pre-distribution stage

In respect of each consumer composite investment it manufactures, a manufacturer must ensure the following are prepared and provided to each distributor in good time before the consumer composite investment is made available for distribution to retail investors:

1. (1) the product summary;
2. (2) the underlying core information disclosures; and
3. (3) sufficient and appropriate information about:
   1. (a) the consumer composite investment's target market, including the identified needs, characteristics and objectives of retail customers in the target market;
   2. (b) its assessment, including any relevant assumptions, in relation to the value to be provided by the consumer composite investment to retail investors in the target market;
   3. (c) any relevant risks it has identified in relation to retail investors, including in particular retail investors with characteristics of vulnerability; and
   4. (d) its distribution strategy for the consumer composite investment.

For the purposes of compliance with DISC 2A.2.1R and the related requirement in DISC 3.2.3R in relation to revised or updated product information, it will normally suffice for the manufacturer to make the required information and documents available on its website, provided they are easily accessible to all firms who may distribute the consumer composite investment.

1. (1) The purpose of providing the distributors with the core information disclosures is to:
   1. (a) assist the distributor in familiarising itself with the information underpinning the consumer composite investment's product summary; and
   2. (b) facilitate any further steps the distributor may consider appropriate to take to meet the information needs of retail investors by preparing and providing additional product communications such as further explanations, illustrations, or information that is more granular, or presented in a way that is more likely to be understood or engaged with by the relevant retail investors.
2. (2) Examples for the purposes of (1)(b) include:
   1. (a) layering information along the pre-sale investment journey;
   2. (b) supplementary product literature such as personalised illustrations of past performance and costs based on the retail investor's intended investment amount;
   3. (c) hover-over information that explains what different types of risk are and how they may be relevant to the retail investor; or
   4. (d) the use of graphics or images that support consumer understanding.