ING Australia has used incorporation by reference to introduce more concise product disclosure statements (PDS) to its product range.
The new PDS was reduced by 33 per cent and will cover ING's OneAnswer and OneCare product range, according to ING product - personal investments head George Lytas.
To provide investors with a simpler and easier to read document, Lytas said a large amount of the non-essential information has been removed from the PDS and made available on the internet instead.
"The incorporated material we've left out is more the administration type information, so we've just referred them to the website for the more operational elements of using the platform," Lytas said.
The concise PDS will benefit investors and financial advisers through an easier understanding of the product features, leading to superior outcomes through clearer advice, he added.
"It is well known that investors found the larger PDS a burden to read and understand. These concise documents will allow for more informed investment decisions," he said.
Lytas said ING may also consider offering the concise PDS to other parts of their product ranges such as their employer superannuation product set.
"We're always looking at ways to better communicate with our investors so we're keen to look at the take-up of this and how it's accepted by our investors and financial advisers," he said.
Legislative change made in August last year allows for incorporation by reference of certain information provided there is a reference to the information source.
As a result, statements of advice and PDS can be significantly reduced in size.
