Shortened PDS timeframe extended

Superannuation trustees and simple managed investment scheme providers have had the timeframe for the new shortened Product Disclosure Statement (PDS) regime extended.

The Australian Securities and Investments Commission (ASIC) has released a class order that will give the Federal Government more time to implement refinements to the regime, and in the meantime, avoid disruption to retail investors and product providers, a statement said.

The Government previously announced product providers could remain in the old regime or continue to issue supplementary PDSs until 22 June 2012, or opt in to the new regime from 22 June 2011 if they were ready to.

Some super funds have already made the switch to the new regime, with Aon Master Trust announcing it would replace its 60 page PDS with a new eight-page option by 1 July 2011.

The Federal Government also announced a number of other changes to clarify the operation of the shorter PDS regime, including confirming that pure risk products are excluded, confirming that combined defined benefit and accumulation products are included, and amending regulations to allow for electronic lodgement of applications.