Case Study on "Australian Securities and Investment Commissions Asic Regulation on Product Disclosure Statements"
Case Study 3 pages (1007 words) Sources: 3
[EXCERPT] . . . .
Asic Regulation on Product Disclosure StatementsASIC) Regulation on Product Disclosure Statements
Australian Securities & Investment Commission (ASIC) plays a crucial role in offering regulatory guide that apply to the content of Product Disclosure Statements. This study will refer to Guide 97 in addressing the key principles of disclosure and ASIC position in them. It will also consider finding out if the said principles are consistent with ASIC disclosure principles. It will consider how some parts of the product disclosure statement relate to the key principles of disclosure in the Regulatory Guide (RG).
ASIC Regulation on Product Disclosure Statements
The key principles of disclosure provided in the RG include the general principle that governs the disclosure of fees in the PDS. In this case, we have the regulations governing multiple investment options. For multiple investment options, RG 97.15 argues that the costs and fees template in the product should encompass the information of other multiple investment options only in cases where such information would confuse the customer. In case the customer is confused, RG 97.16 provides for the fees and cost to be reflected on other PDS section (ASIC, 2011a, p. 8-10).
The next principle addresses the products with more than a single balance investment option. The regulation as per RG 97.19 demands that the person issuing the product should consider displaying the costs of the investment option, where most funds are invested. In addition, RG 97.21 advances that the issuer of the product should encompass the costs and fees of the available default investm
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The other principle addresses the need to include additional voluntary information. This principle as depicted in RG 97.22 argues that no additional voluntary information should be added in the fees paid per year. In addition, any additional information offered should be clear and concise. This is to ensure that the inclusion of large amounts of information in the disclosure does not make it confusing.
The other principle relates to the omission of prescribed information. In this regard, regulation RG 97.28 argues that no circumstance warrants the omission of the prescribed information from the fee and cost template. There is a regulation Guidance for PDSs related management of investment products. For instance, the 97.56 addresses the issue of disclosing transaction-specific fees in the event of a contributory mortgage. In this case, the issuer may wish to separate the general and defined fee disclosure. The guideline advises that all the fee information required should be set out in the supplementary PDS (Colonial First State Investments Limited 2012, p. 6).
Evidently, these Guiding Regulations (GR) are consistent with ASIC's own Good Disclosure Principles. ASIC own disclosure principles include the principle on time, where all disclosure should be made on time (RG 168.60). The other principle is that disclosure should be complete and relevant to the customer (RG 168.64). The third principle demands the disclosure be structured in a way that promotes understanding (RG 168.71). This is followed by the principle five, which… READ MORE
Quoted Instructions for "Australian Securities and Investment Commissions Asic Regulation on Product Disclosure Statements" Assignment:
“Australian Securities & Investment Commission (ASIC) has issue a number of regulatory guides applying to the content of Product Disclosure Statements (PDS). Your assignment is to consider Regulatory Guide 97 and complete the following tasks:
1. Identify the KEY PRINCIPLES OF DISCLOSURE provided in each Regulatory Guide (RG) and the basis for ASIC*****'s position in relation to each. b) Do you think these are consistent with ASIC*****'s own Good Disclosure Principles ( you need to list these) and your reasons ? DO NOT CUT AND PASTE SLABS FROM THE RG. You will be marked according to how well you identify the principles and how you interpret these in your own language. Mark Allocation a) 15% b) 15 % for a total 30%
2. Using the Regulatory Guide (RG) above identify the relevant parts of the Product Disclosure Statement (PDS) which comply with each of the identified key principles in Question 1. Mark Allocation 30%
3. You must make reference to the actual PDS content in your replies and explain why these references relate to the key principles. Mark Allocation 40%
Your assignment should be 3 pages, case study/ report format, you must put all references in
IT MUST BE ALL ORIGINAL WORK NOT PLAGIARISED
check spelling and grammar
Marking out of 100
The Regulatory Guide 97, ASIC*****'s good disclosure principles and the PDS will be sent to you
*****
How to Reference "Australian Securities and Investment Commissions Asic Regulation on Product Disclosure Statements" Case Study in a Bibliography
“Australian Securities and Investment Commissions Asic Regulation on Product Disclosure Statements.” A1-TermPaper.com, 2012, https://www.a1-termpaper.com/topics/essay/asic-regulation-product-disclosure/2963042. Accessed 5 Oct 2024.
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