The Federal Government has kept its promise of introducing simple product disclosure statements (PDS), implementing a four page document for the the First Home Saver Account (FHSA).
The documents released yesterday by Minister for Superannuation and Corporate Law Nick Sherry and Minister for Finance and Deregulation Lindsay Tanner will now make it easier for people using FHSA to understand and compare the products on offer.
"The Rudd Government committed to simplifying disclosure documents as a priority, and now we're delivering on that commitment whilst better informing consumers and cutting red tape," Sherry said.
"Currently, many complex and lengthy disclosure documents are often between 50 and 100 pages long and are as readable as Latin to the majority of Australians. This is unacceptable.
"(The) new disclosure statement .... (is) clear, simple and will improve Australians' access to cost effective financial advice," he said.
"The First Home Saver PDS reforms and the PDS examples show that product disclosure doesn't have to be long, complex and unreadable. These PDS examples are refreshingly short, clear and to the point," Tanner said.
The PDS reform is the first offering from the Financial Services Working Group (FSWG), he said.
The Government intends to monitor consumer response and the industry regarding the changes to the First Home Saver PDS before developing solutions for other products.
