ASIC provides some relief for shorter PDS regime

Multi-funds, superannuation platforms and hedge funds will receive interim class order relief from the Australian Securities and Investments Commission's (ASIC's) new regime on shorter Product Disclosure Statements (PDSs).

ASIC has released guidance for issuers of superannuation products and simple managed investment schemes to ensure compliance with the regime which comes into effect on 22 June 2012, although multi-funds, superannuation platforms and hedge funds can receive relief for 12 months.

ASIC would also take a facilitative approach to the new regime for the first six months after the commencement date because industry participants were still considering some aspects of the regime, ASIC commissioner John Price said.

"Provided industry participants are making a reasonable effort to comply with the shorter PDS regime, ASIC will adopt a measured approach where inadvertent breaches result from a misunderstanding of requirements or systems issues," he said.

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However, deliberate and systematic breaches will be subject to strong regulatory action, Price said.

Issuers of new products have been required to comply with the regime since 22 June 2011 and other product issuers have been able to opt-in voluntarily.

ASIC has published two documents: INFO 155 to provide guidance on technical issues relating to the new regime, and INFO 133 to reflect amendments to the transition period.