What other conditions have to be met?
The statement or information (“information”) must be in writing and be publicly available in a document other than the PDS. The draft regulations also referred to information at a website address, however this has been omitted from the final regulations. However there would appear to be no reason why the information could not be contained in a document that can be accessed at a website address.
The PDS must refer to the information and provide sufficient details about the information to enable a person to (a) identify by a “unique identifier” the document or part of the document that contains the information, (b) locate the information and (c) decide whether to read or obtain a copy of the information.
The PDS must state that a copy of the information may be obtained on request for no charge.
The information must not be contained in a Short-Form Product Disclosure Statement (refer to Schedule 10BA of the Corporations Regulations).
Practical Implications
The new regulation should provide issuers with considerable scope to reduce the length and complexity of their PDS by developing a short PDS with the minimum required content together with one or more appropriately identified documents (which they could post on their website) containing the incorporated information.
The information that is incorporated by reference is still taken to be included in the PDS (reg 7.9.15DA(3)), hence PDS liability attaches to that information. Accordingly the issuer must ensure that both the PDS and the incorporated information are kept up to date and contain no misleading or deceptive statements or omissions of material required by the PDS content requirements.
Statements of Advice
What statements or information can be incorporated?
Regulation 7.7.09B permits any information mentioned in Part 7.7 to be incorporated by reference into a Statement of Advice, other than the “incomplete information” warning under s.945B and the information required by s.947D when the advice recommends the replacement of one product with another.
What other conditions have to be met?
The SOA must refer to the information and provide sufficient details about the information to enable a person to (a) identify by a “unique identifier” the document or part of the document that contains the information and (b) decide whether to read or obtain a copy of the information.
The SOA must state that a copy of the information may be obtained on request for no charge.
The providing entity must give the client the document, unless it has already done so. If the providing entity is an authorised representative, the document may be provided by another authorised representative acting on behalf of the licensee, or by the licensee itself.
Practical implications
Providing entities could use the new regulation to reduce the length of initial SOAs. It also appears to provide an alternative means of providing a statement of additional advice (instead of relying on the relief provided under Class Order 04/1556).
