It’s only been a couple of months since legislation came in to cut the length of FSR-related paperwork that was designed to meet the requirements of the Australian Securities and Investments Commission (ASIC). Now the regulator wants everyone to toe its new “shorter is better” line, saying it will take action against businesses which haven’t cut back their disclosure documents to a consumer-friendly level.

ASIC Executive Director Compliance Jennifer O’Donnell says the industry “still hasn’t adopted the idea of clear, concise and effective” disclosure in its product disclosure statements and other documentation.

“We understand and appreciate it takes time and effort to change documents, and soon there will be more documentation and guidance on how to achieve this from ASIC,” she said last week.

But Ms O’Donnell’s message to companies that still haven’t acted to cut back disclosure documents is simple: “We will take action if we feel that an insurer hasn’t taken the right steps.”