Disclosure of conflicts of interest needs to be more simple so customers can actually understand what a company is trying to say, Australian Securities and Investments Commission (ASIC) Executive Director Compliance Jennifer O’Donnell told ASIC’s summer school last week.

Ms O’Donnell is an outspoken campaigner for better disclosure in the financial markets. She says disclosure of conflicts of interest needs to be plainer, easier to understand and “less boilerplate” to be effective.

Ms O’Donnell made the comments after financial commentator Alan Kohler – who was referring primarily to financial advisers – said the present level of disclosure is “insufficient protection” for unsophisticated investors.

Mr Kohler says disclosures are “buried in a lengthy product disclosure statement”.

Ms O’Donnell says ASIC has placed emphasis on the way companies should manage their conflicts, and many licensees are taking their obligations seriously. But others have done a lot of work on conflicts of interest procedures without following them through.

“We have seen plenty of disclosure, quite a bit of controlling but not enough avoiding.”