Failure to Manage PDS Notifications with ASIC May Attract Serious Consequences

While most AFS Licensees are aware of the requirement to notify ASIC when a Product Disclosure Statement ("PDS") is first given to a client in relation to the issue of a financial product, many AFS Licensees overlook the further requirements to notify ASIC when the contents in a PDS are changed and/or when a financial product in a PDS ceases to be available.

Who is Required to Notify ASIC?

The notification requirements (s 1015D of the Corporations Act 2001 (Cth)) apply to all PDS issuers, being AFS Licensees who issue financial products under a PDS.

Specific requirements apply to managed investment schemes or securities which are included in a sub-fund of a Corporate Collective Investment Vehicle (CCIV) that can be traded on a financial market, managed investment products of an Australian or foreign passport fund. These issuers must lodge a copy of the PDS with ASIC pursuant to section 1015B of the Corporations Act 2001 (Cth).