From 22 June 2012, PDSs for superannuation products and simple managed investment schemes under the Corporations Act 2001 (Cth) (the Act) must be 8 pages in length and meet the new content and section heading requirements.
On 8 June 2011, the Federal Government announced further refinements to the shorter product disclosure statement (PDS) regime to allow more time for providers to put processes in place. ASIC Class Order (CO 11/576) gives effect to this Government proposal on an interim basis. The class order has effect until the earlier of commencement of any amendments to the Act or the Corporations Regulations 2001 (Cth) that have the same or similar effect to the modifications or variations contained in the class order and 22 June 2012.
The Class Order will allow providers of these regulated products:
- to remain in the old regime until 22 June 2012;
- to continue to issue supplementary PDSs until 22 June 2012; and
- to opt into the new regime from 22 June 2011 if they are ready to.
These transitional arrangements apply between 22 June 2011 and 22 June 2012 such that the shorter PDS regime will not apply unless and until the issuer opts in to the new regime. In order to opt in, a PDS must contain a statement that it is prepared in accordance with the shorter PDS regime.
Companies should be aware of the new PDS requirements and consider opting in to the new regime early as a differentiator in the market.