It’s taken Parliamentary Secretary to the Treasurer Ross Cameron nine months to work out what any financial services professional could have told him for nothing: the Financial Services Reform Act (FSRA) has more things wrong with it than a two-bob watch.

Speaking last week at a lunch organised by the Financial Planning Association, he conceded the disclosure requirements in statements of advice (SOA) are flawed because they are mainly principles-based rather than prescribing the nature of compliance.

Senator Cameron, who took up the job in October last year, said SOA requirements resulting from the FSRA were “not anticipated and not supported” by the Government.

“Frankly, there is not really any dispute by the Government that the current levels of documentation and of complexity, particularly in the area of statements of advice, are too great, too cumbersome, too complex and too unfriendly to consumers,” he said.

The Government expects the Australian Securities and Investments Commission and the Australian Prudential Regulation Authority to work the legislation into a better format. “They can give greater direction policy-wise as to what is a compliant document. It’s not their job to offer legal advice but they can give policy direction that will provide encouragement and reassurance to individuals and companies.”