ASIC has issued guidance to assist issuers of superannuation products and simple managed investment schemes comply with the shorter product disclosure statement (PDS) regime.
The shorter PDS regime commences fully on 22 June 2012 and is designed to make PDSs shorter and simpler, and help consumers compare financial products more easily. Issuers of new products have been required to comply with the regime since 22 June 2011 and other product issuers have been able to voluntarily opt-in.
‘Reducing lengthy PDSs of up to 100 pages for superannuation and managed investment products to eight pages is a great improvement for consumers and business,’ ASIC Commissioner John Price said.
ASIC has published Shorter PDSs: Complying with requirements for superannuation products and simple managed investment schemes (INFO 155) to provide concise guidance for industry on technical issues related to implementation of the new shorter PDS regime.
ASIC has also updated Shorter PDS regime: Superannuation, managed investment schemes and margin lending (INFO 133) to reflect the amendments to the transition period implemented by the Corporations Legislation Amendment Regulations 2011 (No.2).
Mr Price noted that industry participants were still considering some aspects of the application of the shorter PDS regime.
‘We are continuing to speak with industry and monitor the situation to see how people respond to these changes. ASIC will take a facilitative approach to compliance for the first six months after the shorter PDS regime commences on 22 June 2012’, Mr Price said.
‘Provided industry participants are making a reasonable effort to comply with the shorter PDS regime, ASIC will adopt a measured approach where inadvertent breaches result from a misunderstanding of requirements or systems issues.
‘However, where ASIC finds deliberate and systemic breaches, we will take stronger regulatory action’, Mr Price said.