A Target Market Determination (TMD) is a legal document which describes who a product is appropriate for (target market), and any particular conditions that determine how the product can be distributed to customers.
A TMD is a document which lays out:
- the people for which the product has been designed,
- the conditions around the product’s distribution,
- when the TMD will be legally reviewed, and
- the record keeping and reporting obligations of financial product distributors.
Please note a TMD is not intended to provide financial advice.