The corporate regulator has extended interim class order relief from the shorter product disclosure statement (PDS) regime for multi-funds, superannuation platforms and hedge funds.
Class Order 12/1592 extended the relief in Class Order 12/749 Relief from the Shorter PDS regime for a further 12 months to 22 June 2014. Relief was originally due to expire on 22 June 2013.
The move by the Australian Securities & Investments Commission (ASIC) comes pending a future government decision on the application of the shorter PDS regime.
Several hedge funds had already issued shorter PDSs when ASIC excluded hedge funds from the shorter PDS regime. Class Order 12/749 stipulated that a hedge fund that had issued a shorter PDS before 18 June 2012 may continue to use it until 31 January 2013.
ASIC extended this transitional relief to 22 June 2013 as well as providing those hedge funds with shorter PDSs between 18 June 2012 and 22 June 2012 and with the benefit of the transitional period from the commencement of the class order.
From 22 June 2013, hedge funds must prepare and give a full PDS.
Extending the transitional period for hedge funds will align with the commencement of new disclosure obligations under ASIC's Regulatory Guide 240 Hedge funds: Improving disclosure (RG 240).
The shorter PDS regime started on 22 June 2012.
Class Order 12/749 excluded superannuation platforms and multi-funds from the shorter PDS regime; however, they can elect to be included.
In September 2012, ASIC released RG 240 which contains new disclosure benchmarks and principles for issuers of hedge funds. The guide set out the specific features and risks of hedge funds that ASIC expected to be addressed in a PDS for these products.
The obligation to disclose against the benchmarks and disclosure principles under RG 240 will come into effect on 22 June 2013.
