Does this mean your Product Disclosure Statement (PDS) needs to be updated?

7 December 2011

The Australian Securities and Investment Commission (ASIC) has updated its guidance for issuers of disclosure documents including PDSs.
ASIC has reviewed and released a new draft of Regulatory Guides 55, 65 and 97. Although the changes to these Regulatory Guides do not contain considerable changes to policy, issuers of standard margin lending facilities, simple managed investment schemes and superannuation products are affected. These new versions of the Regulatory Guides were issued in November 2011, and include:

The Changes:

1. Regulatory Guide 55 Statements in disclosure documents and PDSs: Consent to quote
RG 55 is for issuers of financial products and others who prepare disclosure documents including product disclosure statements (PDSs). This RG provides guidance on how ASIC will administer the requirement under the Corporations Act 2001 (Corporations Act) for an issuer to obtain consent before citing a person in a disclosure document or PDS.

What has changed? –

The changes are technical updates that reflect changes to incorporation by reference since the regulatory guide was first released. Regulation 7.9.15DA of the Corporations Regulations permits incorporation by reference for a PDS.

The update includes reference to the shorter PDS regime affecting issuers of standard margin lending facilities, simple managed investment schemes and certain superannuation products.

Guidance on “How to apply for relief” has been removed from RG 55, and is now contained in RG 51 Applications for Relief

2. Regulatory Guide 65 Section 1013DA disclosure guidelines

RG 65 is for product issuers. It sets out ASIC’s guidelines on how product issuers can meet their obligations under s1013DA of the Corporations Act to disclose in PDSs how labour standards or environmental, social or ethical considerations are taken into account in selecting, retaining or realising an investment.

What has changed? –

The shorter PDS regime sets different disclosure requirements concerning socially responsible investing on trustees of superannuation products and responsible entities of managed investment schemes required to comply with the shorter PDS regime.

3. Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements
RG 97 is also for product issuers of most superannuation and managed investment products issued to retail clients. It provides guidance on how to disclose fees and costs in PDSs and periodic statements.

What has changed? –

Again, the shorter PDS regime sets specific disclosure requirements on some superannuation trustees and managed investment schemes required to comply with the shorter PDS regime.