Risk insurance products have been excluded from the Government’s new Product Disclosure Statement (PDS) regime.
Minister for Financial Services and Superannuation, Bill Shorten, last week outlined transitional arrangements and provided further clarification about the implementation of the new ‘short’ PDS regulations.
The proposed regime relates to the structure of PDSs, which, under the new rules, must be kept to just eight pages in length, and adhere to new content requirements.
However, the Minister has clarified that pure risk products are excluded from the regime, irrespective of whether they are provided through a superannuation fund or not.
Mr Shorten also confirmed that platforms and multi-funds are exempt from the regulations.
Those products which will be required to comply with the new regime, which comes into effect from 22 June 2012, are classified as ‘all superannuation products and simple managed investment schemes’.
“The simplified PDS changes complement the Government’s Future of Financial Advice reforms, which will improve the quality of financial advice provided to Australian investors,” Mr Shorten said.
He added that in order to make it easier for providers to change to the new regime, those who are well advanced in their preparation will be permitted to use the new ‘short’ PDS format from 22 June 2011.
The Minister advised that draft regulations for the regime will be made available for public comment shortly.
