International Law

Treasury has released draft regulations for margin lending disclosure and an example Product Disclosure Statement for public consultation until 23 October 2009.

The draft regulations and an example Product Disclosure Statement (PDS) were developed by the Financial Services Working Group.

The proposed solution to complex lengthy disclosure documents is to prescribe a margin loan PDS that has four A4 pages of content, with additional pages containing a title and table of contents. It will permit the incorporation of other material by reference.

The Government proposes to amend the Corporations Regulations 2001 to provide a specific disclosure regime for standard margin lending facilities.