From 22 June 2012, the "Short and Simple" Product
Disclosure Statement (PDS) requirements will apply
to all superannuation products, simple managed investment schemes
and margin loans. From this date, the current disclosure regime
will no longer apply. In transitioning to the new regime, the Short
and Simple PDS requirements will apply from 22 June 2011:
to superannuation products for which no PDS was prepared prior
to 22 June 2010 (ie new superannuation products); and
to superannuation products for which a PDS was prepared prior
to 22 June 2010, but which require updating (ie by issuing a
Supplementary PDS or a new PDS).
The Short and Simple PDS requirements are contained in the
Corporations Amendment Regulations 2010 (No 5) (Cth) SLI
2010 No 135, which commenced on 22 June 2010 and amended the
Corporations Regulations 2001 (Cth).
For a PDS for a superannuation product, section headings and the
content of the PDS are now prescribed and a maximum length of 8 A4
pages will apply.
A PDS must be made up of a number of sections, which must be
numbered, ordered and titled as prescribed. Additional information
may be incorporated by reference and – to comply with the
maximum length restriction – is unavoidable. A PDS cannot
be updated by issuing a Supplementary PDS. Nor can a PDS be
combined with an FSG.
The Short and Simple PDS regime will not apply to interests that
are solely in a defined benefits fund or solely pension products.
Combined accumulation/pension products and combined
accumulation/defined benefit products (as well as pure risk
products) will still be caught by the new regime. However, there is
provision for an application to be made to ASIC for relief from the
requirements, on a case-by-case basis or on a product-wide basis,
We have prepared a Short and Simple PDS checklist that can be
used by superannuation trustees when preparing and reviewing a
Short and Simple PDS. The checklist is an easy-to-use document that
can help you meet the new requirements.
We have completed a comprehensive legal compliance training
program for responsible managers and employees of a financial
services business in relation to financial services regulation.
This training program has been developed within the existing Norton
Rose ecomply platform.
The ecomply training content can be customised to target
specific legal risk areas and operational requirements. The
financial services module incorporates specific tests that enable
you to check participant knowledge and understanding of the
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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