What is in a PDS?
What is in a PDS?
A document that financial service providers must provide to you when they recommend or offer a financial product. It must include information about the product’s key features, fees, commissions, benefits, risks and the complaints handling procedure.
What is a PDS ASIC?
Under the Corporations Act, a retail client may receive a number of disclosure documents before acquiring a financial product. ASIC has published some Good Disclosure Principles to help product issuers and other professionals in preparing a Product Disclosure Statement (PDS).
Does a managed investment scheme require a PDS?
Broadly, if you are an issuer of a superannuation product or a simple managed investment scheme, you must provide disclosure in the form of a shorter PDS, unless an exclusion or relief applies. Guidance on specific requirements is set out later in this information sheet.
Is a PDS a legal document?
A product disclosure statement (PDS) is a document that must be provided when offering a financial product. The Corporations Act 2001 (Cth) defines financial products. It includes things like shares, credit cards, loans or bonds. A PDS is a type of disclosure document.
When should PDS be given?
RG 168.41 Generally, a PDS should be given to a retail client at or before the time: (a) a recommendation is made to buy a financial product; (b) an offer is made to issue or arrange the issue of a financial product; or. (c) a seller makes an offer to sell the product if that sale requires disclosure.
Who prepares a PDS?
A PDS is prepared by or on behalf of the issuer or seller of the financial product and must contain sufficient information so that a retail client may make an informed decision about whether to purchase a financial product: RG 168.36–RG 168.54.
What is RG97?
RG97 is a new requirement for all super funds to provide additional information about the ‘indirect costs’ incurred when investing in underlying investments. This change affects all super funds in the same way. All super funds are expected to show increased fees and costs.
When should a PDS be given?
The PDS must be given to the person before the person becomes bound by a legal obligation to acquire the financial product pursuant to the offer and must be given in accordance with this Division. (5) This section subject to ss 1012D, 1012DAA, 1012E, 1012F, 1012G, 1014E.
What is PDS in accounting?
PDS ( public distribution system )
What financial products require a PDS?
In fact, it is a must that financial service providers, including banks, credit unions and insurance companies provide you with a PDS when recommending or offering a financial product. This could be anything from a life insurance policy to a credit card.
Who does RG97 apply to?
The rules apply to PDSs and periodic statements issued to retail clients of superannuation and collective investment products. This is set out in ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070 and the ASIC guidance is contained in a new version of RG 97.
What is an indirect cost ratio?
Indirect Cost Ratio (ICR) – Similar to the investment fee, the ICR represents estimated costs related to the management of assets for the investment option, which are deducted from investments rather than paid directly by the Fund. This cost only applies to our investment options that contain real property assets.
