Corporations Regulations 2001

SCHEDULE 10E - FORM AND CONTENT OF PRODUCT DISCLOSURE STATEMENT - SIMPLE MANAGED INVESTMENT SCHEME  

(regulation 7.9.11W )

Modifying legislative instruments

6   Contents of section 4 (Risks of managed investment schemes)  

6(1)    
Section 4 of the Product Disclosure Statement 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 managed investment scheme.

6(3)    
Section 4 must describe the significant risks of managed investment schemes (to the extent only that the description required by subitem (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 registered schemes 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 member ' s wealth are invested; and

(iv) the member ' s risk tolerance.

6(4)    
The responsible entity may provide additional information about significant risks of managed investment schemes by applying, adopting or incorporating a matter in writing.