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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 [2011] 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.

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