The Australian Securities and Investments Commission (ASIC) has issued a new class order exemption relating to section 1012J of the Corporations Act 2001, which will go some way to saving the forests. This is the section which states that information in a product disclosure statement (PDS) must be up to date.

Faced by a swag of industry complaints about having to constantly prepare supplementary product disclosure statements (SPDS) to update a PDS when the change is minor, ASIC has changed its mind. The class order means providers won’t have to provide a supplementary statement if up-to-date information is available through a website, a toll-free telephone service or any other facility that provides convenient access.

ASIC Executive Director of Financial Services Regulation Ian Johnston said the order is intended to “provide regulatory certainty and clarity for product-issuers, without reducing timely disclosure to investors”.

“If they choose, an issuer will be able to avoid the uncertainty of section 1012J by putting in place a mechanism by which investors may conveniently obtain up-to-date information about matters that can change quickly.”