A new class order declaration relating to the preparation of a product disclosure statement (PDS) by multiple issuers has been issued by the Australian Securities and Investments Commission (ASIC). It provides relief where a PDS may be prepared by more than one issuer.

The regulator said in a statement that the new order applies where the financial products offered in a single PDS document are of the same kind, and includes all investment, super, life and general insurance products.

However, the relationship between the issuers and products must still be disclosed. ASIC says it has adopted this approach to promote commercial efficiency and flexibility for related issuers in a conglomerate group.

“By requiring the PDS to relate to a particular kind of financial product, ASIC believes that consumers will be better able to compare the merits and relative costs of like products offered by various issuers within a corporate group,” the statement said. “There is less likelihood that consumers may be confused about the benefits and risks of a group’s products when they are of the same kind.” 

ASIC recognises that there may be some circumstances where related issuers may wish to use a single PDS for different kinds of financial product. In these situations, ASIC will consider granting relief on a case-by-case basis.

A copy of the class order can be obtained from the ASIC’s Infoline or its website at www.asic.gov.au/co.