Disclosure of risks in a PDS
The Victorian Supreme Court has clarified the disclosure obligations of responsible entities when issuing product disclosure statements for managed investment schemes. InWoodcroft Brown v Timbercorp Securities Limited (in Liq) & Ors  VSC 427 Judd J dismissed a class action brought by investors in Timbercorp’s agribusiness schemes who were seeking to avoid liability for loans entered into with Timbercorp to finance their investment in the relevant schemes. In doing so, His Honour gave some useful guidance on what risks need to be disclosed in a product disclosure statement for a managed investment scheme.
Significant cases, legislation or articles referred to
- Woodcroft-Brown v Timbercorp Securities Limited (in Liq) & Ors  VSC
- Corporations Act
- Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Ltd  NSWCA 206
- Gardiner v Agricultural and Rural Finance  NSWCA 235