Act Now! Failure to Manage PDS Notifications with ASIC May Attract Serious Consequences

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Who is Required to Notify ASIC?

The notification requirements apply to all PDS issuers, being AFS Licensees who issue financial products under a PDS, unless the PDS is lodged with ASIC under section 1015B of the Corporations Act 2001 (Cth).

What are the requirements?

Since 1 July 2008, the responsible person for a PDS must tell ASIC when:

  • the PDS is first given to someone in a recommendation, issue or sale situation;
  • fees and charges in the PDS are changed; or
  • any product in the PDS ceases to be available.

If any of the above changes has occurred, the responsible person for a PDS must notify ASIC online via any of the following forms:

  • Form FS88 PDS in-use notice;
  • Form FS89 Notice of a change to fees and charges in a PDS; or
  • Form FS90 Notice that a product in a PDS has ceased to be available.

Your PDS History

AFS Licensees can check all of the current and past PDS lodgements with ASIC via the AFS Licensee Portal by generating a ‘PDS Transaction History Report’.

The PDS Transaction History Report shows:

  • how many current PDS the AFS Licensee has on record with ASIC;
  • document references to these PDSs;
  • date that a PDS was put into use;
  • date that a PDS was put out of use; and
  • any supplementary notice lodged.

We encourage all relevant AFS Licensees to review their PDS Transaction History Report and withdraw any PDSs that are no longer in use.

Regulatory Consequences

Failure to fulfil the notification requirements may attract serious consequences. The failure to lodge PDS notifications is one of the reasons which led to the suspension of AxiCorp Financial Services Pty Ltd’s AFS Licence, as outlined in ASIC’s recent media release.

A PDS must include information about the product’s key features, fees, commissions, benefits, risks and the complaints handling procedure.

Further Reading

For further information regarding notification requirements for PDSs, please refer to Information Sheet 94.

If you have concerns about compliance with relevant PDS notification requirements, please contact us.

About The Author

Melody Gao

Melody assists in preparing, reviewing and negotiating legal documentation for participants in the financial services industry. Melody also assists with developing, reviewing and amending compliance documentation. She also supports the Compliance Consultants with the preparation of AFSL and ACL applications, variations and compliance reviews. Melody provides ongoing legal support and also assists in implementing ongoing compliance support, updating procedural documentation and preparing compliance reporting for Compliance Committees and Boards of Directors.