ASIC is seeking industry feedback on changes to product disclosure statements (PDSs) that would remove duplicate guidance covered in financial advice disclosures.
In an announcement from ASIC, the regulator said it recognised regulatory complexity is a significant challenge and that simplifying guidance improves the industry’s ability to prepare PDSs.
“This is part of our commitment to reducing regulatory complexity, enhancing clarity and improving accessibility for all stakeholders,” ASIC said.
The proposed updates would incorporate other guidance on PDS disclosure, lodgement and notification obligations to ensure, as much as possible, relevant guidance on PDSs is in one guide which would be contained to RG 168.
“We are particularly interested in receiving feedback on whether there is other PDS guidance that should be incorporated in RG 168, other ways we could simplify the guidance, or if there is guidance proposed to be withdrawn from RG 168 that should be retained and why,” ASIC said.
It would remove the guidance relating to Financial Services Guides and Statements of Advice, as this guidance is already covered in Regulatory Guide 175 AFS licensing: Financial product advisers – Conduct and disclosure.
It would also amend and cross-reference information on fees and costs; clarify the legislative basis for the current Good Disclosure Principles; and reframe the existing guidance on misleading and deceptive conduct to highlight examples of general disclosure concerns with PDSs, without changing its substance.
The consultation aims to make other regulatory guides covering PDS disclosure, lodgement and notification guidance redundant.
RG 168 covers obligations for licensees, authorised representatives and product issuers when it comes to the design and distribution of PDSs, as well as giving policy guidance on preparing a PDS that complies with legal requirements and how ASIC will monitor the use of PDSs.
An updated RG 168 would see the regulator withdraw two information sheets and four regulatory guides.
| Proposed redundant information sheets and regulatory guides | |
| Information Sheet 94 | Notification requirements for Product Disclosure Statements |
| Information Sheet 155 | Shorter PDSs – Complying with requirements for superannuation products, simple managed investment schemes and simple sub-fund products |
| Regulatory Guide 65 | Section 1013DA disclosure guidelines |
| Regulatory Guide 66 | Transaction-specific disclosure for PDSs |
| Regulatory Guide 197 | Warrants: Out-of-use notices |
| Regulatory Guide 219 | Non-standard margin lending facilities: Disclosure to investors |
Source: ASIC
