DISC 2A.4 Provision of product summary: modified obligations

The obligation in DISC 2A.3.1R is modified in respect of regular or repeated investments by the same retail investor in the same consumer composite investment, as follows:

1. (1) the firm must provide the product summary in respect of the initial transaction; and
2. (2) in respect of subsequent transactions, it suffices for the firm to notify the retail investor, at least at yearly intervals, of where they can find the latest version of the product summary.

In this section, a multi-option consumer composite investment is a product which is a combination of a wrapper and underlying investment options which are consumer composite investments and where the wrapper and the selected underlying consumer composite investments must be purchased together.

In relation to a multi-option consumer composite investment, the conditions in DISC 2A.4.4R and DISC 2A.4.5R apply instead of those in DISC 2A.3.1R.

The firm must verify that an up-to-date product summary for each of the underlying consumer composite investment options is available for provision to retail investors, as well as a general summary of the wrapper, including, as a minimum, an explanation of the wrapper’s general terms and conditions and information on the wrapper’s costs and charges as well as any benefits.

The firm must take reasonable care to ensure it, or another person in the distribution chain for the multi-option consumer composite investment, will provide the retail investor with:

1. (1) access to the general summary of the wrapper as well as the product summary, for each of the underlying consumer composite investment options, at an appropriate stage in the provision of the service or carrying on of the distribution activities, so as to assist the retail investor's consideration of the merits of investing through the wrapper and the investor’s consideration of the merits of investing in the underlying consumer composite investment options; and
2. (2) any of the following, in a durable medium, at the time the sale is concluded or as soon as reasonably practicable afterwards and, in any case, before the retail investor is bound by any agreement to buy or otherwise invest in the consumer composite investment:
   1. (a) the general summary of the wrapper together with the product summary for each of the options selected by the retail investor;
   2. (b) the general summary of the wrapper together with links to where the relevant product summaries for each of the options selected by the retail investor are to be found; or
   3. (c) a bespoke product summary comprising the information and links in (b), together with relevant information about the underlying consumer composite investments chosen by the retail investor and including, as a minimum, information on costs and charges as well as the risk and return information for the underlying options or the overall investment, such as in the firm's reasonable judgement may meet the retail investor's information needs.

Where the consumer composite investment is a share or unit in a fund with different share or unit classes, the manufacturer must prepare a product summary for each class of shares or units, except where DISC 2A.4.7R or DISC 2A.4.8R apply.

The manufacturer may combine information about two or more classes of the same consumer composite investment into a single product summary, provided the resulting document complies with DISC 3.1.2R.

Where, in the manufacturer's reasonable judgment, the core information disclosures for one class of a consumer composite investment is representative of other classes, it may select that class as the basis for a product summary to be provided to retail investors in respect of the representative class as well as the classes being represented, provided:

1. (1) the choice of representative class is fair to prospective retail investors in the classes being represented;
2. (2) the resulting product summary complies with DISC 3.1.2R in respect of the representative class as well as the classes being represented;
3. (3) the manufacturer keeps a record of the choice of representative class and of the classes being represented, as well as of the rationale for the choice.

Where DISC 2A.4.8R applies, the manufacturer must keep the record in DISC 2A.4.8R(3) for at least 3 years from the last date the share class is used as the representative class for a product summary.