The Association of Superannuation Funds of Australia (ASFA) has confirmed 22 June 2012 as the date for shorter product disclosure statements (PDSs), following confusion about the start date for the regime.
ASFA said some of its members understood that although the shorter PDS regime commences on this particular date, funds would only need to issue a shorter PDS at the time they amend it after the June date.
“It has been confirmed [that this is the] ‘hard start date’ for the shorter PDS regime. That is, all funds need to have their shorter PDS in place by that date, as required by sub-regulation 4(5) of the Corporations Amendment Regulations 2010 (No 5),” ASFA said.
Due to confusion around the start date, there is now concern that some funds may struggle to meet the deadline.
ASFA said the corporate regulator, ASIC, will not grant relief to businesses that miss the start date as it could be considered an advantage over those trustees who have met the deadline for the regime.
“Those funds that miss the 22 June 2012 start date will need to consider whether this constitutes a significant breach that needs to be reported to ASIC under section 912D of the Corporations Act,” ASIC said.
ASFA said since ASIC is aware of the confusion with the start date, “this would likely be taken into consideration in responding to any breach notices they receive regarding this issue.”
The short-form PDS should not exceed eight A4 pages, and must summarise the “significant” information the federal government has said investors need to know – such as information about the issuer, benefits, risks, costs, investment strategy and return objectives.
The new regime was designed to make PDSs shorter, simpler and more engaging for investors.
