New reforms to create the first four-page Product Disclosure Statements (PDSs) have been passed by the Financial Services Working Group (FSWG). The new PDS was created in preparation for the start of the First Home Saver Accounts.
The reforms have been welcomed by the Minister for Superannuation and Corporate Law, Nick Sherry, and the Minister for Deregulation and Finance, Lindsay Tanner.
Tanner said: “The First Home Saver PDS reforms and the PDS examples show that product disclosure doesn’t have to be long, complex and unreadable. These PDS examples are refreshingly short, clear and to the point.”
The new PDSs will make it simpler for people who are interested in the First Home Saver Account to understand the products. Essential information is provided over four A4 pages in plain English that can be understood in minutes.
“The FSWG has delivered an outstanding document and demonstrated that it is possible to have short, simple disclosure that covers the important things that consumers need to know before investing in a financial product,” Sherry said.
A consultancy tested the PDS examples among consumers in consultation with the FSWG and the advisory panel.
The Government will monitor how industry and consumers react to the First Home Saver PDS and use the response to develop solutions for other products.