Document ID: chunk:federal_register_of_legislation:F2024C01249:clause:10f_6
Version: federal_register_of_legislation:F2024C01249
Segment Type: clause
Provision Reference: sch 10F cl 6
Character Range: 2351480–2352929

6  Contents of section 4 (Risks of simple sub‑fund products)
 (1) Section 4 of the Product Disclosure Statement for the simple sub‑fund product must include statements to the following effect:
 (a) all investments carry risk;
 (b) different strategies may carry different levels of risk, depending on the assets that make up the strategy;
 (c) assets with the highest long‑term returns may also carry the highest level of short‑term risk.
 (2) Section 4 must describe, in the form of a summary, the significant risks of the particular simple sub‑fund product.
 (3) Section 4 must describe the significant risks of simple sub‑fund products (to the extent only that the description required by subclause (2) has not already described the risk) by including statements to the following effect:
 (a) the value of investments will vary;
 (b) the level of returns will vary, and future returns may differ from past returns;
 (c) returns are not guaranteed, and members may lose some of their money;
 (d) laws affecting CCIVs may change in the future;
 (e) the level of risk for each person will vary depending on a range of factors, including:
 (i) age; and
 (ii) investment time frames; and
 (iii) where other parts of the person's wealth are invested; and
 (iv) the person's risk tolerance.
 (4) The CCIV may provide additional information about significant risks of simple sub‑fund products by applying, adopting or incorporating a matter in writing.