Financial services providers would have just over a year to distil their product disclosure statements (PDS) down to eight pages, under a proposal from Minister for Financial Services Bill Shorten.
The move in some cases will cut existing documentation of this type from over 100 pages and make the content more user-friendly.
"The simplified PDS changes complement the government's Future of Financial Advice (FOFA) reforms, which will improve the quality of financial advice provided to Australian investors," Shorten said.
Under the proposal, PDS issued for all superannuation products and simple managed investment schemes regulated by the Corporations Act 2001 would need to be eight pages long by 22 June 2012 to meet the new content requirements.
However, if ready, providers can start complying from 22 June 2011.
Other changes would include confirmation that pure risk products are excluded from the regime; inclusion of combined defined benefit and accumulation products in the new PDS regime; and amendment of the regulations to allow for situations where applications are electronically lodged.
Draft regulations for these amendments will be available for public comment shortly.
"These refinements will start as soon as possible. Where necessary, providers can approach ASIC for appropriate interim relief," Shorten said.
