Question

The Corporation Act 201 outlines the range of disclosure documents, that must be provided to retail customers, which 2 documents?

Options:
Option 1: Product Disclosure Statement and Financial Services Guide (Correct Option)
Option 2: Risk Assessment Document and Investment Portfolio Summary
Option 3: Customer Feedback Form and Loan Agreement
Option 4: Compliance Certificate and Annual Report

Answer 1

The Corporation Act 2001 mandates the provision of two key disclosure documents to retail customers, which are the Product Disclosure Statement (PDS) and the Financial Services Guide (FSG), designed to ensure transparency and assist in informed decision-making.

Step-by-step explanation:

The Corporation Act 2001 specifies that there are two key disclosure documents required to be provided to retail customers: the Product Disclosure Statement (PDS) and the Financial Services Guide (FSG). These documents are designed to inform customers about the products and services being offered, ensuring transparency and aiding them in making informed decisions. The Product Disclosure Statement provides detailed information on a financial product, including benefits, risks, and fees, whereas the Financial Services Guide outlines the details of the service provider, their services, and any potential conflicts of interest.