ASFA welcomes short-form PDS regulations

Pauline Vamos

New regulations on short form Product Disclosure Statements (PDSs) are an important step forward to a new era in disclosure for fund members, according to the Association of Superannuation Funds of Australia (ASFA).

“Fund members can look forward to an eight-page PDS rather than 80,” said ASFA chief executive Pauline Vamos.

“This move, and the associated incorporation by reference provisions, will encourage and enable funds to provide information online that reflects the needs of different members and their stage of life. This is an enormous step to integrating education, advice and disclosure.”

Funds will be able to implement the changes in a cost-effective way with appropriate consumer research within the two-year transition period to June 2012, according to ASFA.

Along with the upcoming regulatory changes, the final Cooper Review report and the Government’s response to Ripoll, the short form PDS regime helps provide a framework and future plan for the industry to meet ongoing changing member needs, Vamos said.

“It will also equip the industry to continue its investment in the whole of the Australian economy for the long-term growth of working Australians’ retirement incomes,” she said.