The financial services regulator has released guidance on the shorter product disclosure statement (PDS) regime which will apply to superannuation and simple managed investment scheme providers.
In what the Australian Securities and Investments Commission (ASIC) deemed a positive step for investors, these product issuers will have to cut their PDSs to eight pages, amongst making a number of other changes.
"Reducing lengthy PDSs of up to 100 pages for superannuation and managed investment products to eight pages is a great improvement for consumers and business," ASIC Commissioner John Price said.
Some product providers, however, are still unclear on some of the requirements of the new regime, and ASIC will take a "facilitative approach to compliance" in the first six months after the shorter PDS commences on 22 June 2012, he said.
"Provided industry participants are making a reasonable effort to comply with the shorter PDS regime, ASIC will adopt a measured approach where inadvertent breaches result from a misunderstanding of requirements or systems issues," Price said.
"However, where ASIC finds deliberate and systemic breaches, we will take stronger regulatory action," he added.
Class order relief will be provided to product issuers such as multifunds, superannuation platforms, and hedge funds.
