ASIC has released guidance for the shorter product disclosure statement (PDS) regime ahead of its implementation on 22 June.
The guidance, “Shorter PDSs: Complying with requirements for superannuation products and simple managed investment schemes”, would clarify technical issues surrounding the implementation of the new regime, ASIC said in a statement.
The new PDS regime, designed to make PDSs shorter and simpler to help consumers compare financial products more easily, starts on Friday.
Issuers of new products have had to comply with the regime since 22 June 2011 and other product issuers have been able to voluntarily opt in.
“Reducing lengthy PDSs of up to 100 pages for superannuation and managed investment products to eight pages is a great improvement for consumers and business,” ASIC commissioner John Price said.
ASIC has also updated “Shorter PDS regime: Superannuation, managed investment schemes and margin lending” to reflect the amendments to the transition period implemented by the Corporations Legislation Amendment Regulations 2011.
Price said ASIC was continuing to speak to and monitor the industry to see how people responded to the changes.
“ASIC will take a facilitative approach to compliance for the first six months after the shorter PDS regime commences on 22 June 2012,” he said.
“Provided industry participants are making a reasonable effort to comply with the shorter PDS regime, ASIC will adopt a measured approach where inadvertent breaches result from a misunderstanding of requirements or systems issues.
“However, where ASIC finds deliberate and systemic breaches, we will take stronger regulatory action.”
