ASIC has released its Consultation Paper 223: Facilitating electronic financial services disclosures which it says is aimed at “enhancing investor engagement with disclosure”.
“We are seeking feedback on providing class order relief to facilitate default electronic delivery of financial services disclosures and to facilitate the use of more innovative product disclosure statements,” a statement from ASIC said.
The regulator also said it wants to clarify “misunderstandings” that the “electronic environment” can present for some consumers.
“As such, we are proposing to include some guidance around making more innovative PDSs readily navigable and ensuring consumers are not distracted or diverted from important information,” it said.
“[Also] ASIC is consulting on updates to our Regulatory Guide 221 Facilitating online financial services disclosures to reflect these proposals and to remove uncertainty about the circumstances in which electronic communications can be used,” ASIC said.
The interim report of the Financial System Inquiry discussed the potentially greater role technology could play in simplifying product disclosure statements for consumers.
“Technology can also be used to provide disclosure more effectively at points in time most relevant to the consumer’s need,” the interim report said.
ASIC commissioner John Price said the regulator believes electronic disclosure could also reduce costs for providers and enable them to better align their disclosure with consumer preferences.
“ASIC is focused on making disclosure more effective and meaningful for consumers of financial services,” Mr Price said.
