NEED TO KNOW

On 27 November 2013, ASIC released updated ASIC Information Sheet 155 Shorter PDSs: Complying with requirements for superannuation products and simple managed investment schemes(ASICINFO 155) to clarify guidance on technical issues related to the implementation of the shorter Product Disclosure Statement regime (shorter PDS regime).

BACKGROUND

The Corporations Regulations 2001 (Cth) (Corporations Regulations) were amended by the Corporations Amendment Regulations 2010 (No 5) (Cth) to establish a shorter PDS regime for superannuation products (other than risk-only products) and simple managed investment schemes.  The shorter PDS regime commenced fully on 22 June 2012 and requires a PDS to be a maximum of 8 A4 pages and to comply with heading and content requirements. 

On commencement of the regime, ASIC released ASIC INFO 155 to provide concise guidance on the shorter PDS requirements as well as on certain topics such as incorporation by reference, ‘white label’ products, employer PDSs and insurance information. 

As a part of its review work, ASIC has reviewed a sample of shorter PDSs to gauge compliance and to identify any need for further industry guidance.  As a result of that review, ASIC has updated ASIC INFO 155 to clarify its guidance on technical issues related to implementation of the shorter PDS regime. 

SUMMARY

The table below summaries the updates to ASIC INFO 155.

Click here to view table.

In ASIC Media Release 13-318MR ASIC updates disclosure guidance for shorter PDSs, ASIC identified the following points should also be considered by issuers of shorter PDSs:

  • unless the shorter PDS is intended only for employer-sponsored members, all shorter PDSs must explain the cooling-off period; and
  • PDSs must refer to both the benefit and cost of a product or ASIC’s view is that the PDS may be misleading or deceptive. 

TIMING OF UPDATES

The updates in ASIC INFO 155 are effective as of 27 November 2013. 

NEXT STEPS

Trustees and responsible entities of funds operating under the shorter PDS regime should review their shorter PDSs to ensure compliance with the technical aspects of the regime.