DISC 3.1 The product summary

1. (1) The manufacturer must prepare a short and concise document in English, titled ‘product summary’, setting out appropriate information about the essential characteristics of the consumer composite investment, conveying as a minimum the core information disclosures.
2. (2) The product summary must be clearly separate from other marketing materials and contain enough information within itself, without relying on cross-references to other materials, to enable retail investors to achieve at least a reasonable and sufficient understanding of the nature, investment objectives, risks and costs of the consumer composite investment
3. (3) The requirement in (2) is modified in relation to:
   1. (a) a multi-option product (see DISC 2A.4.1R), in that the product summary may rely on cross-references to the wrapper’s general summary and need not be separate from it;
   2. (b) the consumer composite investment's prospectus, in that the product summary must include a cross-reference to those parts of the prospectus where more detailed information on costs and charges can be found (see DISC 6.6.3R); and
   3. (c) the product summary for a feeder NURS or an ICVC that is a feeder NURS, in that the authorised fund manager must cross refer to documents relating to its qualifying master scheme which enable retail investors to understand the qualifying master scheme's key particulars, including:
      1. (i) its investment strategy;
      2. (ii) a description and explanation of any material differences between the risk profile of the feeder NURS and that of the qualifying master scheme; and
      3. (iii) its charges, including the aggregate of the charges of the feeder NURS and its qualifying master scheme as disclosed in the feeder NURS's most up-to-date prospectus.

1. (1) A firm must take reasonable care to ensure the product summary and any additional product communication:
   1. (a) meets the information needs of retail investors;
   2. (b) is likely to be understood by retail investors; and
   3. (c) equips retail investors to make decisions about the consumer composite investment that are effective, timely, and properly informed.
2. (2) A firm must ensure the contents of the product summary and any additional product communication are clear, fair and not misleading.

Firms who are authorised persons are reminded of the analogous requirement in PRIN 2A.5.3R, which applies to any communications with a retail customer.

The contents of the product summary must:

1. (1) reflect and be consistent with the underlying core information disclosures;
2. (2) be consistent with the terms and conditions applicable to the consumer composite investment, the contents of any offer documents and any contractual documents governing the operation of the consumer composite investment; and
3. (3) comply with any requirements in  DISC 4 about how certain core information disclosures must be presented.

1. (1) In preparing a product summary the manufacturer should have regard to the information needs and characteristics of the retail investors to whom the consumer composite investment is likely to be distributed so as to ensure compliance with DISC 3.1.2R, which applies the more general requirement in PRIN 2A.5.3 R to the person preparing the product summary.
2. (2) PRIN 2A.7.2 G is relevant to the degree of care required of a firm in complying with DISC 3.1.2R. A firm should consider the following factors in particular:
   1. (a) the nature of the consumer composite investment – in particular, the risks of the investment, its relative complexity, and its costs, fees, and charges;
   2. (b) the characteristics of the retail investors to whom the consumer composite investment is intended to be distributed or is in fact being distributed, to the extent the firm knows this information or reasonably should know it or be able to obtain it, including:
      1. (i) their financial objectives or reasonable expectations in relation to the consumer composite investment; and
      2. (ii)their resources, degree of financial capability or sophistication, or any characteristics of vulnerability; and
   3. (c) whether the firm has provided or will provide advice to the retail investor.
3. (3) Where providing a piece of information in the product summary would meet two or more requirements in DISC, for avoidance of doubt a manufacturer is not required to provide that information more than once in the product summary.

If, in preparing it, a firm takes reasonable steps to ensure the product summary or additional product communication complies with the requirement in DISC 3.1.2R(2), a contravention of that rule does not give rise to a right of action under section 138D of the Act or regulation 9 of the Consumer Composite Investments Regulations.