The Corporations Regulations 2001 (Cth)
(Corporations Regulations) were amended by the
Corporations Amendment Regulations 2010 (No 5) (Cth) to
establish a shorter PDS regime for superannuation products (other
than risk-only products) and simple managed investment schemes. The
shorter PDS regime commenced fully on 22 June 2012 and requires a
PDS to be a maximum of 8 A4 pages and to comply with heading and
On commencement of the regime, ASIC released ASIC INFO 155 to
provide concise guidance on the shorter PDS requirements as well as
on certain topics such as incorporation by reference, 'white
label' products, employer PDSs and insurance information.
As a part of its review work, ASIC has reviewed a sample of
shorter PDSs to gauge compliance and to identify any need for
further industry guidance. As a result of that review, ASIC has
updated ASIC INFO 155 to clarify its guidance on technical issues
related to implementation of the shorter PDS regime.
The table below summaries the updates to ASIC INFO 155.
Updated or new topic
Summary of update
The font size in the primary document for the issuer's
name, address, ACN, ABN or AFS licence number must be at least 8
All information other than the above in the primary document
must be at least 9 points.
PDS issuers should ensure the print is not too pale or
Shorter PDS warnings required by Schedules 10D and 10E of the
Corporations Regulations must be prominent.
Examples of formatting to create emphasis include increasing
font size, changing the font colour, inserting a warning symbol or
using a coloured background.
Whether and how investment options may change
The shorter PDS must state whether the trustee or responsible
entity can add, close or alter investment options and, if so, what
notice will be given to members or investors.
If a superannuation fund trustee may transfer an
employer-sponsored member who has left their employer to another
division of the fund:
any potential fee or premium increase or any loss of benefits
should be disclosed in section 3 of the shorter PDS as significant
features of the superannuation product; or
the consequences of a member leaving their employer may
alternatively be disclosed in section 4 of the shorter PDS
alongside the risks of superannuation.
Issuers of shorter PDSs need to be aware of changes to fee
disclosure arrangements under Stronger Super.
Accumulation and pension interests in the same
If a shorter PDS covers both an accumulation division and a
pension division in the superannuation fund, the PDS should give
similar prominence to the features of both divisions.
In the years following the global financial crisis of 2008 many Australian investors lost their life savings as financial products failed and the Australian Stock Exchange shed over 3,000 points.
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