Product Disclosure Statement—additional Product Disclosure Statement—additional content

Product Disclosure Statement—additional content

(1) A Product Disclosure Statement for offers of interests in an IDPS-like scheme must also include such information as a person acquiring an interest in the scheme as a retail client would reasonably require to understand the following, but does not need to include information in relation to actual or identified accessible investments: (a) any differences between the rights of a holder of accessible investments and the rights of a member of the scheme in respect of accessible investments, including information on: (i) cooling-off rights; and

Note: See section 1019BA (as notionally inserted by ASIC Corporations (Investor Directed Portfolio Services Provided Through a Registered Managed Investment Scheme) Instrument 2023/XX.

  (ii) voting rights; and
  (iii) withdrawal rights under section 724 and section 1016E in relation to accessible securities and accessible financial products;
(b) the consequences for a member if at any time the member has not engaged a person, or a person meeting particular requirements, to provide:
  (i) financial product advice to the member in relation to the scheme; or
  (ii) instructions to the responsible entity in relation to accessible investments,
including the ability of the member in such circumstances to:
  (iii) provide instructions in relation to accessible investments; and
  (iv) continue to be a member of the scheme;
(c) how and to whom a member may make a complaint in relation to:
  (i) the operation of the scheme; and
  (ii) accessible financial products held through the scheme; and
  (iii) financial product advice provided to the investor in relation to the scheme that is not provided by or on behalf of the responsible entity;
(d) members’ right to disclosure in relation to accessible investments including that a member will have the right to elect to receive copies of communications sent to holders of accessible investments, including those communications which the holder may elect to receive;
(e) how the responsible entity will determine what financial products, securities or other investments are or will be available as accessible investments for the scheme, including the processes applied and the factors considered for that purpose;
(f) whether withdrawal requests are allowed for by the scheme’s constitution and, if so, how a withdrawal request will be dealt with under the constitution where the request relates to an accessible investment which is subject to a minimum holding requirement or giving effect to the request might otherwise adversely affect members other than the requesting member.

(2) The Product Disclosure Statement must also include: (a) a statement that copies of the following policies are available free of charge on request: (i) the responsible entity’s policy on whether, and on what basis, it will exercise any voting or other rights arising from holding accessible investments; and (ii) the policy on the consequences for a member in the circumstances referred to in paragraph (1)(b); and (b) a statement that a separate document specifying the accessible investments for the scheme will be provided on request free of charge, if the Product Disclosure Statement does not specify these investments; and (c) statements to the effect that: (i) the total fees and charges payable by a member will include the costs of the scheme as well as the cost of any accessible investments chosen by the member; and (ii) it is important that the member understand the fees of any accessible investments chosen by the member and that those fees will be in addition to the fees charged for the scheme, together with transaction and account costs incurred on behalf of the member; and (iii) the costs of the accessible investments chosen by the member will generally be set out in a disclosure document or Product Disclosure Statement for the accessible investments; and (d) examples, based on estimates, of the total of fees, charges and expenses of the scheme and the accessible securities and accessible financial products that may be acquired through the scheme that satisfy the requirements of subsection (3). (3) The examples referred to in paragraph (2)(d): (a) must express the total estimate of fees, charges and expenses as a proportion of the total price paid in acquiring the accessible securities and accessible financial products through the scheme; and (b) must be examples that the responsible entity has reasonable grounds for believing are based on estimates of the fees, charges and expenses that are within the range typically charged for accessible securities and accessible financial products of the relevant kind; and (c) must cover a range of accessible securities and accessible financial products that may be acquired through the scheme; and (d) need not refer to actual or identified accessible securities or accessible financial products.