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, where appropriate.
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.
e-Training
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.
To find out more about ecomply, click here.
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 law.
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