A Federal Government initiative to simplify disclosure documents for superannuation and simple managed investment products is likely to be extended to other sectors of the financial services industry.

Financial Services Minister Chris Bowen says the inter-departmental Financial Services Working Group has already released a First Home Saver Account product disclosure statement for assessment.

Feedback will be used to further streamline disclosure documents for other financial products.

He told the Better Regulation Business Forum in Canberra that a key part of his job is “reducing unnecessary red tape” and a main focus of the regulatory reform is simpler, more effective disclosure documents.

“We firmly hold the view that excessively complex disclosure in financial services not only generates an unjustifiable compliance burden for financial services providers but is also counter-productive,” Mr Bowen said.

“Reams of disclosure documents mean that investors and consumers are less likely to read the information that they really need to be aware of.”

The new disclosure statements will be easier to read and understand and will make it easier for consumers to compare products. They will also be shorter, reducing printing and mailing costs for industry.

The Financial Services Working Group was established in February 2008, and comprises officials from Treasury, the Department of Finance and Deregulation and the Australian Securities and Investments Commission.