Key points:

• The proposed relief would apply to responsible entities of registered simple managed investment schemes for applications made through the AMFS
• The applications would be automatically processed using the ASX electronic settlement system, the Clearing House Electronic Sub-register System (CHESS)
• The system will ensure investors are provided with a Product Disclosure Statement (PDS) before making any application to purchase an interest in the financial product available through the AMFS.

ASIC Commissioner Greg Tanzer said the proposed relief would make it quicker, easier and potentially cheaper for investors to apply for an interest in a simple managed investment scheme.

‘Society is moving in a direction that requires quick, practical and efficient ways of operating.

‘The proposed relief will provide a more efficient application process, because the requirement for the investor to complete an application form will be replaced with an electronic message that performs the same function’, Mr Tanzer said.

Significantly, the message will also indicate whether the investor has downloaded the current PDS from the AMFS broker’s website or otherwise been given the current PDS before applying.

‘The PDS includes information about the product’s key features, fees, commissions, benefits, risks and the complaints handling procedure. It is absolutely vital that investors are given a PDS before making any investment decision and the proposed relief is designed to support investors to make confident and informed decisions’, Mr Tanzer said.

The ASX is separately working on meeting other regulatory elements described in the consultation paper.

Comments for Consultation Paper 208 ASX Managed Funds Service: Relief from the application form requirement (CP 208) are due by 11 July 2013.

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