CLIENT UPDATE 22 June 2010
Short & Simpliﬁed Product Disclosure Statements Regulations Registered The Corporations Amendment Regulations 2010 (No 5) which amend the Corporations Regulations 2001 to prescribe the form and contents of short and simpliﬁed Product Disclosure Statements (PDSs) for superannuation products and certain other ﬁnancial products commenced today (22 June 2010). Under the new Regulations, PDSs will be much shorter and simpler - a maximum length of eight A4 pages for a superannuation PDS will apply. Section headings and contents of PDSs are now prescribed to ensure that consumers are provided with the key information they need to make an investment decision (additional information can be included provided the prescribed length is not exceeded). However, the Regulations are not in force until 22 June 2011 at which time superannuation trustees must comply with the new regime if they roll existing PDSs or offer new products requiring a new PDS. From 22 June 2012, all PDSs need to comply with the new regime.
PRESCRIBED CONTENT The superannuation product PDS must be made up of a number of sections which must be numbered, ordered and titled as prescribed. The prescribed content includes how superannuation works, product features and beneﬁts, risks, taxation, investments, fees and costs, and insurance (where applicable).
INCORPORATION BY REFERENCE In view of the page limits, the Regulations provide for other information to be located outside the PDS. This information may be
incorporated by reference, so that the material is deemed to be part of the short PDS (the full range of PDS liability and enforcement provisions therefore apply in relation to the incorporated material). Alternatively, the information can be referred to without incorporation by reference, in which case the referred material does not form part of the PDS (but remains subject to relevant legislation including misleading or deceptive conduct provisions).
TRANSITION For superannuation PDSs, there is a 2 year transitional period for implementation. For the ﬁrst 12 months, the regulations are not in force. However, from 22 June 2011, superannuation trustees must comply with the new regime if they roll existing PDSs or offer new products requiring a new PDS. From 22 June 2012, all PDSs need to comply with the new regime.
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Short & SimpliďŹ ed Product Disclosure Statements - Regulations Registered by Paul Cleary
Paul Cleary has considerable expertise in the provision of specialist ďŹ nancial services and would be pleased to offer strategic superannuation legal advice.
For more information, please contact: Paul Cleary Partner T: 02 8257 5760 M: 0407 052 170 firstname.lastname@example.org
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