Shorter PDSs do not mean smaller font

facebook Twitter LinkedIn RSS

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.

How CompliSpace can help

Australian Financial Services Licence holders are inundated with a raft of corporate governance obligations and an ever-growing compliance burden, which can easily distract focus away from core business activities.

CompliSpace delivers industry specific web-based policies, programs and procedures that can be quickly tailored and configured to suit an organisation’s needs and are kept up-to-date with legal and regulatory changes by our team of specialists.

Our team of compliance professionals and lawyers combine extensive expertise with practical technology-enabled solutions to simplify the complexity of the regulatory environment and allow our clients to focus on allocating resources toward improving financial performance.

Contact Details

P: +61 (2) 9299 6105 (Sydney) / +61 (8) 9288 1826 (Perth)



This blog is a guide to keep readers updated with the latest information. It is not intended as legal advice or as advice that should be relied on by readers. The information contained in this blog may have been updated since its posting, or it may not apply in all circumstances. If you require specific or legal advice, please contact us on (02) 9299 6105 and we will be happy to assist.

Compliance with Current and Future Child Protection Laws – Embedding a Child Protection Culture. How can this be achieved?

Financial Services Updates

Financial Services Updates