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 financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
