ASIC has reviewed a sample of shorter PDSs for superannuation and simple managed investment schemes with the aim of gauging how well PDS issuers were complying with the new shorter PDS regime introduced in June 2012. While ASIC overall found that issuers have made a good effort to comply with the regime (and that non-compliance has tended to be technical rather than substantive), issuers of shorter PDSs for superannuation and simple managed investment schemes should familiarise themselves with the additional guidance provided by ASIC.
Following commencement of the shorter PDS regime in June 2012, ASIC has reviewed a sample of shorter PDSs for superannuation and simple managed investment schemes. Based on its review, ASIC has identified certain areas where industry may benefit from further guidance when preparing a shorter PDS (and has updated Information Sheet 155 Shorter PDSs: Complying with requirements for superannuation products and simple managed investment schemes (INFO155) to reflect its findings.
The updates to INFO 155 clarify ASIC’s guidance on matters such as:
- page restrictions, font size and formatting of ‘warnings’;
- disclosure of whether and how investment options may change; and
- treatment of accumulation and pension interests in the one superannuation fund.
ASIC also emphasises the following points to be considered in preparing a shorter PDS:
- a shorter PDS must explain the ‘cooling-off period’ (including for public offer superannuation funds unless intended only for employer-sponsored members); and
- if a product feature has a benefit and a cost, the PDS may be misleading unless it refers to both the benefit and the cost.
See ASIC’s media release dated 27 November 2013.