ASIC has released guidance to provide greater certainty for financial services providers who supply disclosure documents such as product disclosure statements (PDS) to clients using online means, including email and the internet.
Within the guidance, RG 221, ASIC has set out its interpretation of the online disclosure provisions under the Corporations Act 2001.
The new regulatory guide includes good practice protocols for online delivery of PDSs, financial services guides and statements of advice to ensure that clients receive clear, concise and effective information as well as minimise their exposure to security risks where disclosures are delivered online.
In the guidance, ASIC noted that some industry standards, for example the EFT Code, may prohibit or discourage delivery by methods such as hyperlinks.
ASIC said providers of financial services disclosures should always consider which form of delivery of disclosure – paper or online – best suits their clients.
“ASIC recognises the importance that providers place on delivering more user-friendly and relevant information to clients and customers,” ASIC deputy chairman Belinda Gibson said.
“Email and internet delivery can make financial services disclosure more user-friendly for clients and customers who wish to receive disclosures in this way, and it can provide savings for financial service providers.
“The guidance that ASIC has published will give financial services providers greater confidence in delivering financial services information online.”
While the Corporations Act allows the online delivery of financial services disclosures in many cases, ASIC said it understood that some providers have been discouraged from doing so because of uncertainty about what specific practices the law permits.
