Fundency

Target Market Determination

Date

The date from which this document is effective is April 30, 2024.

Introduction

This Target Market Determination (TMD) has been prepared by Fundency Pty Ltd trading as Fundency with Australian Credit Licence 496643.

This document is intended to comply with our obligations under the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019, which requires the determination of a target market for our products, and associated purposes. It will give the consumer assistance in determining whether the product is aimed at them, whilst at the same time allowing us to gauge whether the products are meeting their intended market. This document is called the Target Market Determination, hereinafter referred to as “TMD”.

It is also intended to provide consumers, and where appropriate, distributors with an understanding of the class of consumers for which the product has been designed. It takes into account the objectives, needs and financial situation of those members of the target market.

This TMD is not intended to replace other documents related to the products provided by us which set out the terms and conditions relating to the product upon which we expect you to rely when making a decision about applying for the product, including, and in particular, the contract document which will be sent to you prior to you entering into an agreement with us.

Product

The product to which the TMD relates is the SMALL AMOUNT CREDIT CONTRACT (“SACC”) and the MEDIUM AMOUNT CREDIT CONTRACT (“MACC”) offered by us, as that terms are defined in section 5 of the National Consumer Credit Protection Act 2009, and schedule 1 of the National Consumer Credit Protection Act 2009 that is, loans in which:

For SACC:

  • The amount borrowed is less than $2000.
  • The loan period is no longer than 1 year.
  • The principal borrowed along with fixed credit charges - Establishment fee of 20% of the Amount Financed and Monthly fee of 4% of the Amount Financed per month, are repaid in equal installments.

For MACC:

  • The amount borrowed is between $2,001 and $5,000.
  • The loan period is between 16 days and 2 years.
  • A one off establishment fee not exceeding $400 and a maximum annual interest rate of 48%.

TARGET MARKET

SACCs and MACC's have been designed for consumers who:

  1. Are in need of a loan of an amount between $300.00 and $5,000.00 for any legal personal purpose.
  2. Have a regular income.
  3. Have an acceptable credit history.
  4. Need a response to the loan application.
  5. Are not in financial hardship.
  6. Have legal capacity to enter into a loan agreement.
  7. Have the financial capacity to make the principal repayments, fees and interest in installments over the short term which is no longer than 12 months.
  8. These are regarded as the key attributes of the loan.

CONDITIONS AND RESTRICTIONS ON SUPPLY

We will not supply a SACC or a MACC to any consumer:

  1. Who is not of legal capacity (either by age or mental or other disability).
  2. Who is in financial hardship (or who in our opinion is likely to be so within the foreseeable future).
  3. Who does not presently have the capacity to repay the loan within the expected loan length.
  4. Where the loan, if provided, would not meet the consumer’s requirements or objectives.

HOW WILL WE KNOW IF THE PRODUCT IS NOT MEETING THE TARGET?

Based on the description of the target market above, we believe that it is unlikely that the product will not meet the target market. Nevertheless, we will maintain a watch on the consumers who access the loans to ensure that the majority are within the target market. If they are not, we will review the product and change its key attributes to ensure that the target market is met.

DISTRIBUTION

It is intended that the sole method of distribution to consumers will be by us, as the credit provider, alone. Access will primarily be by way of our website or by making direct contact with us. We do not have authorised representatives, or agents for the purposes of distribution.

REVIEW

We will review this TMD on the occurrence of any of the following triggering events.

  • On there being a relevant amendment to National Consumer Credit Protection Act or any associated Act or Regulation which has the effect of significantly altering the rules relating to the provision of SACCs or MACCs.
  • On the occurrence of a “significant dealing”. We will consider whether there has been a significant dealing.
  • Where a significant proportion of consumers who take out a SACC or a MACC are not in the target market.
  • There is actual or potential harm to those consumers who access to product and are not in the target market.
  • The extent to which the income gained from those outside the target market is different to those within the target market.
  • The period of time over which those outside the target market took out SACCs or MACCs.
  • On the occurrence of any of the following events:
  • The number of complaints to AFCA in relation to SACCs or MACCs exceeding 0.5% of the number of SACCs or MACCs entered into in any calendar month.
  • The number of internal complaints made by consumers in relation to SACCs or MACCs exceeding 1% of the number of SACCs or MACCs entered into in any calendar month.
  • The receipt of more than one letter from ASIC or any regulator in relation to the method of the provision of SACCs or MACCs in any calendar month.
  • On or about 5 October 2023, being the first anniversary of the TMD.
  • If there is no other triggering event, each two years from the last review.

A triggering event will require the review to be undertaken within one month.

REPORTING

As noted above, we do not use distributors in the provision of SACCs or MACCs to consumers. As a result, whilst the law requires a TMD to set out what information must be provided by distributors to us, in our view, this is not necessary. The TMD will be revisited if we commence distribution through a distribution network.