A self managed super fund has been in the news of late and it seems their popularity is rising each day. However, for those looking at these, they don’t always know whether a product disclosure statement is actually required. Product disclosure statements are actually very simple documents even though thousands don’t realize what they are. So, do SMSFs have to issue a product disclosure statement?
What Is A Product Disclosure Statement?
A product disclosure statement or PDS as it’s commonly known as is basically a statement in which it contains details about a member’s account of a SMSF. A member’s entitlement as well as their benefits is listed within the document. However, the document is actually very well detailed and in-depth as it must contain everything a potential investor would need to know before choosing a self managed super fund in Australia.
Everyone Must File A PDS
Product disclosure statements are necessary and in fact, required by law for anyone looking to use a SMSF. Since 2002, these have become a must-have for any investor and it will be a very important document to have. If there is no disclosure statement then quite simply the person who is thinking about setting one of these up, will not know the full story and that is wrong. By law, the requirement for a PDS is a must. If you want to find out more, check out smsfselfmanagedsuperfund.com.au for more details.
Should You Look At The PDS?
Absolutely yes. Everyone who is going to use a self managed super fund must have a PDS and must look at this carefully. It would be very risky and dangerous for anyone to use a SMSF without having a look at the product disclosure statement. These statements are there for a reason and they are used by most who look at the self managed super funds too. You may choose not to use these statements and if you do, that is your own choice but it could be very risky indeed and that is why you should really consider looking at the statements beforehand.
Information Is Key
Most people forget that the product disclosure statements do house a lot of important facts and information. It can be so easy to forget a piece of information but when it is disclosed in a statement, it’s much easier to understand and remember. That is why more and more need to consider using the product disclosure statements. They are not there just for show but to also ensure fairness with everyone who looks at the self managed super funds. If you would like to know more about super funds or disclosure statements, visit smsfselfmanagedsuperfund.com.au.
Considering A SMSF, Check the PDS First
Anyone can choose to set up a self managed super fund, but for anyone who plans to do so, they must think about the PDS. This is a useful and important document to have and it really helps to cover all bases too. Things are easily forgotten but when there is the product disclosure statement, it makes everything a lot safer and above board. For anyone using the self managed super fund, look at the PDS first.