ASIC has provided further guidance on its new requirements for “shorter” Product Disclaimer Statements for simple managed investment and superannuation schemes.
Following its review of several shorter PDSs issued since the new rules came into effect on June 22, the regulator said it found issuers had made a “good effort” to comply.
But ASIC identified some technical problems with some of the PDSs it reviewed.
For one, some issuers appear to have been trying to cram as much information as possible on the shorter PDSs. “You may be tempted to use a smaller font in shorter PDSs because of limited space,’’ as ASIC puts it in its updated information sheet.
ASIC has clarified several points in its latest update which include:
- Shorter PDSs being required to a maximum of eight A4 pages.
- Font size should be at least 9 points.
- Warnings should be formatted to attract attention, such as being in larger font, in a different colour, in a box etc.
- Shorter PDSs must provide information how a person can switch their investments.
- Super fund trustees must provide shorter PDSs to employer sponsors as well as members.
- Shorter PDSs issued by super funds must provide similar prominence to both accumulation and pension features to ensure enough information is provided on both.
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