Shorten sets new guidelines for PDSs
Shorter and simpler product disclosure statements are set to be introduced under a government initiative to provide consumers with the means to make better financial decisions.
Under the Shorter Product Disclosure Statement regulations set to take effect from 22 June 2012, disclosure statements for certain financial products - including superannuation and simple managed investment schemes - will be presented in a much simpler format.
The new arrangement will help Australian investors understand the key costs, risks and features of superannuation and managed investment scheme products, said Financial Services Minister Bill Shorten.
He said the government is aware that the financial services industry is dealing with a number of implementation issues in moving to the new Shorter Product Disclosure Statement regulations for superannuation platforms and multifunds and would be undertaking further consultation with industry and consumer groups to determine how these products will be affected by the new regulations.
In the meantime, the government stated that the superannuation platforms, multifunds and hedge funds will be excluded from the Shorter Product Disclosure Statement regime.
However, relief will be provided by the Australian Securities and Investments Commission so that superannuation platforms and multifunds can, on the discretion of the provider, be included in the Shorter Product Disclosure Statement scheme.
"We need to keep in mind that while the shorter disclosure documents work well for relatively simple financial products, complex products often have features and risks that can't be addressed in a short and simple manner," Shorten said.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
