This means that there will be a PDS for these types of financial products: typically, when a company is listed on the Australian Securities Exchange (ASX), our ASIC regulator requires it to provide a disclosure document, and the document most commonly provided to investors is called a prospectus. The prospectus must be filed with ASIC prior to the issuance of securities and contains a number of essential information. The disclosure requirements for financial products contained in the Companies Act 2001 generally do not apply to securities (such as shares on the stock exchange). That is, if you want to buy a share of Company X that is already listed on the ASX, the broker will not provide you with a PDS for the stock. if the Financial Product or a Financial Product of the same type issued at the same time is subsequently sold or offered for sale within 12 months of the Issue, unless it is demonstrated that the circumstances of the issue and the subsequent sale or offer do not give rise to any reason to conclude that the Product was issued or acquired for that purpose. of the treatment, the product could not be marketed on a licensed market; or a POS must contain all the information that you (as a «retail investor») may reasonably need to make an informed decision about whether or not to choose a financial product. The PDS should also help you make accurate comparisons between different products and help you better understand the product. Be warned, some PDS will make you more confused than you started. If so, call the provider and tell them it`s confusing, call ASIC to tell them, or go see another provider. A POS must be provided to you if there is a personal recommendation, an offer to issue or an offer to sell a financial product. RG 221 Facilitating the disclosure of financial services online Note: See section 50AA in the event that a person controls an entity. Our regulator, the Australian Securities and Investment Commission (ASIC), defines a financial product as «a facility by which people typically make financial investments, manage financial risks or make cashless payments».
These include managed funds, superancies, ETFs, separately managed accounts (SMAs) and most insurance. RG 168 Disclosure: Product Disclosures (and Other Disclosure Requirements) Under the Corporations Act, a retail investor may receive a number of disclosure documents before purchasing a financial product. Essentially, this is the document you ask for and want to read (I`ll be the first to admit they`re pretty dry) – before you invest in a financial product! The Corporations Act facilitates the use of shorter and simpler PDSs by allowing abbreviated PDS and inclusion by reference, and applies a customized disclosure system to certain products. ASIC has procedures for monitoring and assessing PDSs after they are issued. (b) a sale of the Product to the person would take place in accordance with the offer in the circumstances referred to in subsection (5), (6) or (8); and (i) the Issuer has issued the Product for the purposes of the person to whom it was issued, sells or transfers the Product, or grants, issues or transfers shares of the Product or options or warrants on the Product; or According to MoneySmart, a PDS is «a document that financial service providers must provide to you when recommending or offering a financial product. It contains information on the main features of the product, fees, commissions, benefits, risks and the procedure for handling complaints. » whether there are reasonable grounds to conclude that the proceeds were issued or acquired for that purpose (whether or not there were other purposes for the issuance or acquisition); and (c) no statement of disclosure of the product or on behalf of the controller has been prepared prior to the sale of the product by the controller; and ASIC has published certain principles of good disclosure to assist product issuers and other professionals in preparing a Product Disclosure Declaration (PDS). They will also be useful for creating other information materials for retail investors. (ii) Although the product may be traded on an authorized market, the offer is not made in the ordinary course of trade on an authorized market; Sale up to an indirect sale by mutual agreement by the controller. . . .
To learn more about buying shares, take our free equity investment course at Rask Education. 5. This subsection deals with circumstances in which:. . . Some of the important information you should look for in the PDS are:. .