Corporations Regulations 2001

SCHEDULE 10F - FORM AND CONTENT OF PRODUCT DISCLOSURE STATEMENT - SIMPLE SUB-FUND PRODUCTS  

(regulation 7.9.11ZE )

6   Contents of section 4 (Risks of simple sub-fund products)  

6(1)    
Section 4 of the Product Disclosure Statement for the simple sub-fund product must include statements to the following effect:

(a)    all investments carry risk;

(b)    different strategies may carry different levels of risk, depending on the assets that make up the strategy;

(c)    assets with the highest long-term returns may also carry the highest level of short-term risk.

6(2)    
Section 4 must describe, in the form of a summary, the significant risks of the particular simple sub-fund product.

6(3)    
Section 4 must describe the significant risks of simple sub-fund products (to the extent only that the description required by subclause (2) has not already described the risk) by including statements to the following effect:

(a)    the value of investments will vary;

(b)    the level of returns will vary, and future returns may differ from past returns;

(c)    returns are not guaranteed, and members may lose some of their money;

(d)    laws affecting CCIVs may change in the future;

(e)    the level of risk for each person will vary depending on a range of factors, including:

(i) age; and

(ii) investment time frames; and

(iii) where other parts of the person ' s wealth are invested; and

(iv) the person ' s risk tolerance.

6(4)    
The CCIV may provide additional information about significant risks of simple sub-fund products by applying, adopting or incorporating a matter in writing.