Insurers will be given more time to comply with new product disclosure requirements, extending the original period to three years.

The Australian Securities and Investments Commission (ASIC) has moved the cut-off date for dollar disclosure in general insurance products to June 2008. Compliance relief for insurers was due to expire in next month, following a grace period introduced in June 2005.

The dollar disclosure regime requires companies or individuals that provide personal advice, and product issuers, to disclose as dollar amounts any costs, fees, charges, expenses, benefits and interests.

The idea was to help consumers make a more informed choice when buying a financial product, but implementing the scheme has been time-consuming and costly.

In 2004, ASIC Executive Director of Policy and Markets Regulation Malcolm Rodgers conceded there are compelling reasons in limited circumstances why dollar disclosure is impossible, unreasonably burdensome or not in clients’ interests.

A proposal by Parliamentary Secretary to the Treasurer Chris Pearce to change the requirements – as well as further discussions with the industry – prompted the extension.