A Target Market Determination (TMD) is a document that explains which people particular financial products may be suitable for (the target market) and sets out any conditions around how financial products can be distributed to consumers. TMDs are compulsory for most financial products.
The TMD includes information such as:
- Who is likely to buy the product, including details such as their ability to meet their financial obligations and endure financial losses
- How and where the product will be sold
- When and how the TMD will be reviewed.