Financial services disclosures could be delivered electronically by default under new proposals from the Australian Securities and Investments Commission (ASIC).

Providers would no longer need clients’ permission to send disclosures to their email addresses. ASIC’s proposal, aimed at cutting red tape and enhancing investor engagement, is now open for consultation.

“We want to encourage more innovative ways of delivering important information, presented in a way that consumers can understand and act on,” Commissioner John Price said.

“At the same time, we believe electronic disclosure could reduce costs for providers and enable them to better align their disclosure with consumer preferences.”

Under current regulations, disclosures must generally be delivered in printed form, either personally or by post.

Other delivery methods, including email, require clients’ permission.

“Many financial services disclosures are lengthy, printed documents,” an ASIC consultation paper says. “Technology is now such that we would expect to see more use of electronic methods to create and deliver mandated disclosure information.”

The Insurance Council of Australia (ICA) told insuranceNEWS.com.au it supports the proposal.

“ICA has identified the use of the latest IT developments to maximise consumer understanding as a key part of the project,” GM Communications & Media Relations Campbell Fuller said.

“Consequently, ICA looks forward to working through the ASIC proposals with its members and providing a co-ordinated industry response.”

The consultation closes on January 16.