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ASIC News: Extension of transition period for shorter PDS regime

by Martha.Ware 21. June 2011 16:34

ASIC has announced its intention to extend the transition period for the shorter product disclosure statement (PDS) regime for superannuation and simple managed investment schemes.

On 8 June 2011, the Federal Government announced its plan to make refinements to the shorter PDS regime. These proposed refinements will allow providers of these regulated products to:

  • remain in the old regime until 22 June 2012;
  • continue to issue supplementary PDSs until 22 June 2012;
  • opt into the new regime from 22 June 2011 if they are ready to.

Class Order CO 11/576 gives effect to this proposal on an interim basis. This is to allow time for the Federal Government to implement the refinements to the shorter PDS regime it previously announced, and to avoid any interim disruption that could adversely impact retail investors and providers of superannuation and simple managed investment scheme products.

The Federal Government’s announcement also included a number of other changes to clarify or refine the operation of the shorter PDS regime. These refinements include:

  • changes to confirm that pure risk products are excluded from the regime (irrespective of whether they are provided through a superannuation fund or not);
  • changes to clarify that combined defined benefit and accumulation products are included in the regime;
  • amending the regulations to allow for situations where applications are electronically lodged.

CO 11/576 does not give effect to these proposed changes.

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