ASIC proposes online disclosure
ASIC is seeking feedback on plans to “ease the burden of disclosure” on the financial services industry by using the internet.
The watchdog released a consultation paper last Wednesday on the possibility of allowing disclosure through email and hyperlinks.
This will mean companies will be allowed to notify their clients by email that financial services disclosure information is available on a website or email them a hyperlink.
ASIC says the proposal also has the potential to save costs for business in meeting legal requirements, while giving providers scope to make disclosure more “interactive, innovative and user-friendly”.
Australian consumers are becoming more familiar with the use of electronic media and financial providers are increasingly interested in using the internet as an information source.
“We also recognise that using email and the internet to provide information may expose consumers to risk, including internet scams or fraud,” the paper said.
“However, on balance, we think the advantages of using email and the internet to send information outweigh the disadvantages.”
Investment and Financial Services Association (IFSA) CEO Richard Gilbert has welcomed the move, saying financial services regulation on superannuation documentation alone generated more than 100 million pages or 530 tonnes of paper last year, and cost $85 million in administration.
The watchdog released a consultation paper last Wednesday on the possibility of allowing disclosure through email and hyperlinks.
This will mean companies will be allowed to notify their clients by email that financial services disclosure information is available on a website or email them a hyperlink.
ASIC says the proposal also has the potential to save costs for business in meeting legal requirements, while giving providers scope to make disclosure more “interactive, innovative and user-friendly”.
Australian consumers are becoming more familiar with the use of electronic media and financial providers are increasingly interested in using the internet as an information source.
“We also recognise that using email and the internet to provide information may expose consumers to risk, including internet scams or fraud,” the paper said.
“However, on balance, we think the advantages of using email and the internet to send information outweigh the disadvantages.”
Investment and Financial Services Association (IFSA) CEO Richard Gilbert has welcomed the move, saying financial services regulation on superannuation documentation alone generated more than 100 million pages or 530 tonnes of paper last year, and cost $85 million in administration.