ASIC has announced new class order relief which simplifies certain disclosure requirements for issuers of deposit products provided certain conditions are met.
Class Order [CO 06/476] varies Class Order [CO 05/681] by granting:
- permanent unconditional relief to issuers of deposit products from the requirement to include termination values in periodic statements; and
- permanent conditional relief to issuers of deposit products from the requirement to disclose interest rates in Product Disclosure Statements (PDSs).
Relief from disclosure of termination values is available provided:
• you give a written notice to depositors or display a notice at branches and on your website explaining how a person who holds a deposit product may find out the termination value of the deposit product at the time of an inquiry;
AND
•you have in place means by which the holder may find out the current termination value, being means that are simple and involve no charge imposed by the issuer or its associates, and little inconvenience to the holder.
Relief from the requirement to disclose interest rates in PDSs for all deposit products is given on the following conditions:
• The PDS clearly and prominently states how any person (including prospective applicants) may ascertain the interest rate at any time; and
• The means by which any member of the public may ascertain the interest rate are simple and involve no charge and little inconvenience to them.
The effect of this relief is that interest rate changes will not require a formal amendment (by SPDS) or replacement of a part of a PDS and lodgement of an in-use notice.
