DISC 3.4 Identifying and acting on concerns

Where a firm in the distribution chain for a consumer composite investment identifies that a product summary, core information disclosures, or additional product communication contains (or may contain) information that is in any material respect misleading, inaccurate or out of date, it must promptly and appropriately:

1. (1) if they are the person who prepared the product summary, core information disclosures or additional product communication, amend or otherwise revise or update it so that it ceases to be misleading, inaccurate or out of date, or as necessary to address the concern;
2. (2) if they are not that person, raise their concerns with the person who prepared the product summary, core information disclosures or additional product communication; and
3. (3) inform other firms in the distribution chain for the consumer composite investment about the concern.

1. (1) In complying with DISC 3.4.1R, a firm should have regard to the related requirements in DISC 2A.1.4R and DISC 3.1.2R.
2. (2) The general Consumer Duty obligations in PRIN 2A.2.5R and PRIN 2A.5.14R are relevant to an authorised person's concerns relating to any communication about the consumer composite investment. For example, where the firm is concerned that information in the product summary is likely to be misunderstood by retail investors, or that information in other documents is inconsistent with the product summary, it should promptly notify the issue to the relevant firm in the distribution chain.

1. (1) In keeping with its Consumer Duty obligations, an authorised person in the distribution chain for a consumer composite investment who is alerted to potentially inaccurate or misleading information in the product summary should consider what action, if any, may be required or appropriate in order to:
   1. (a) avoid causing foreseeable harm to retail investors (PRIN 2A.2.8R); or
   2. (b) rectify the situation, if the authorised person identifies that retail investors have suffered foreseeable harm (PRIN 2A.2.5R).
2. (2) Where the concerns are sufficiently significant, the firm may conclude that the action required in the circumstances is to pause distribution of the consumer composite investment until such time as the concern has been addressed.

Where an authorised person identifies that it has provided inaccurate, misleading or out-of-date information in the product summary or in any additional product communication communicated to retail investors, it should consider whether retail investors may have suffered harm as a result. The Consumer Duty obligation in PRIN 2A.2.5R is likely to be relevant in this situation.