New PDS for Home Saver Accounts
Nick Sherry
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.
Recommended for you
Proposed legislative changes to safe harbour duty could result in advisers having reduced professional indemnity costs, a joint submission by seven major licensees said.
With 66 per cent of newly established advice licensees being sole advisers, what are the risks and legal ramifications to consider when taking the plunge into self-licensing?
Despite its popularity, only 1 per cent of financial advisers say they have often discussed cryptocurrency with clients, CoreData said, fuelled by concerns of heavy legal expenses if the product goes wrong.
AFCA and the CSLR have signed a memorandum of understanding as to how they will support an efficient financial services sector via the scheme.