Condensed PDS timeframe revealed


Providers of superannuation products and simple managed investment schemes will have just over a year to adapt to new Product Disclosure Statement (PDS) requirements, under a new proposal by the Government.
Assistant Treasurer Bill Shorten (pictured) said that from 22 June 2012 these product providers would need to cut their PDSs down to just eight pages and meet new content requirements.
The move is designed to help consumers who have in some cases been forced to trawl through over 100 pages to understand key information about financial products.
Transitional arrangements will be put in place to give product providers flexibility and ensure that all can meet the changes.
These include allowing product providers to continue to issue supplementary PDSs until 22 June 2012, as well as the option to take up the new regime from as soon as 22 June 2011.
Pure risk products will be excluded from the new regime irrespective of whether they are provided through superannuation, while combined defined benefit and accumulation products will be included.
Shorten stated that further changes to apply the shorter disclosure requirements to platforms and multi-funds are not currently in the works.
Draft regulation on these amendments will be available shortly for public comment.
Financial Services Council (FSC) director of Policy, Martin Codina, said the changes would provide the industry with a smooth transition to the new eight-page regime.
"The FSC is especially pleased Minister Shorten has clarified that the new eight page regime is not intended to apply to platforms and multi-funds," Codina said.
"The changes to exclude pure risk products from the regime are also a good outcome for consumers and the industry."
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.