ASIC reviews shorter PDS guidance
The Australian Securities and Investments Commission (ASIC) has released updated guidelines on its shorter Product Disclosure Statement (PDS) push, reminding superannuation providers to detail cooling-off periods and costs.
Following the launch of the shorter PDS regime in June last year, ASIC conducted a review to see how successful it was and found that while compliance was high, some technical problems existed.
It said some of the shorter PDSs it viewed were hard to read because the font size was too small, or warnings were not formatted to attract attention.
In terms of content, the regulator stressed that cooling-off periods needed to be thoroughly explained and costs detailed, as well as benefits, so that the consumer was not misled.
Superannuation providers also needed to be aware that shorter PDSs might need to be updated to take into account Stronger Super regulatory changes, it said.
ASIC reminded providers that it had ‘stop order powers', which it would use if statements were seen to be misleading.
Recommended for you
A former licensee director, who failed to report an adviser’s fee-for-no-service conduct, has been banned for three years by ASIC.
Coastal Advice Group chief executive, Daniel Brown, has said the firm has no intention of slowing down, with plans to do as many as 15 acquisitions in the next 12 months.
The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call.
Two national advice businesses have merged to form a leading holistic advice business with $2.5 billion in funds under management.
