The new reality of the FSRA for everyone set in last week when ASIC placed its first interim stop orders on product disclosure statements on two companies – Mediterranean Olives Project Limited and Environinvest Cattle Project Limited. 

Under the FSRA rule that now also applies to insurance, superannuation and financial institution offer documents, companies who issue managed investment products must submit documents such as prospectuses with ASIC prior to their release.

ASIC placed an interim stop order on the companies because their statements did not include information to back up forecasts and information was not always presented in a clear and concise manner.