Aussie Regulator Opens Public Consultation into Electronic Disclosure Methods
- ASIC wants financial markets and all their participants to embrace the digital age in their own suitable way. Improved electronic disclosure rules are only the first step in the regulators aim to better engage customers.
The Australian Securities and Investments Commission (ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term) has announced a public consultation into electronic disclosure, inviting companies with heavy reliance on electronic communications to provide their requirements to allow regulatory rules to be framed and implemented more efficiently.
The paper, titled ‘Facilitating Electronic Financial Services and Disclosures’ welcomes financial market participants to use “more innovative formats for Product Disclosure Statements,” and several times refers to ASIC's desired goal of "content of disclosures evolving in new ways that are more engaging for consumers."
Retail foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term brokers stand to be the most affected by any regulatory changes with regards to electronic disclosure, because such firms usually conduct >90% of all communications online.
The regulator points out that it doesn’t necessarily matter which communication method firms choose to disclose, it only matters whether it's suitable. In the report, ASIC states, “We take a technologically neutral approach to disclosures and do not mandate the delivery of disclosures electronically.” Adding, “Providers need to determine the method of delivering disclosures that best suits their clients and which will not expose those clients to undue risk of scams and fraud. For example, a margin-lending product might work well online because clients are likely to be monitoring their investments online.”
For firms that specialize in financial services delivered online, ASIC’s advice is clear: “We think that one way to make disclosure more effective is by encouraging and facilitating the use of electronic disclosures." In the speculator driven retail trading arena the future is only digital.
John Price, ASIC Commissioner
ASIC Commissioner, John Price said, ‘ASIC is focused on making disclosure more effective and meaningful for consumers of financial services. We want to encourage more innovative ways of delivering important information presented in a way that consumers can understand and act on."
Mr. Price added, "At the same time, we believe electronic disclosure could reduce costs for providers and enable them to better align their disclosure with consumer preferences."
The Australian Securities and Investments Commission (ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term) has announced a public consultation into electronic disclosure, inviting companies with heavy reliance on electronic communications to provide their requirements to allow regulatory rules to be framed and implemented more efficiently.
The paper, titled ‘Facilitating Electronic Financial Services and Disclosures’ welcomes financial market participants to use “more innovative formats for Product Disclosure Statements,” and several times refers to ASIC's desired goal of "content of disclosures evolving in new ways that are more engaging for consumers."
Retail foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term brokers stand to be the most affected by any regulatory changes with regards to electronic disclosure, because such firms usually conduct >90% of all communications online.
The regulator points out that it doesn’t necessarily matter which communication method firms choose to disclose, it only matters whether it's suitable. In the report, ASIC states, “We take a technologically neutral approach to disclosures and do not mandate the delivery of disclosures electronically.” Adding, “Providers need to determine the method of delivering disclosures that best suits their clients and which will not expose those clients to undue risk of scams and fraud. For example, a margin-lending product might work well online because clients are likely to be monitoring their investments online.”
For firms that specialize in financial services delivered online, ASIC’s advice is clear: “We think that one way to make disclosure more effective is by encouraging and facilitating the use of electronic disclosures." In the speculator driven retail trading arena the future is only digital.
John Price, ASIC Commissioner
ASIC Commissioner, John Price said, ‘ASIC is focused on making disclosure more effective and meaningful for consumers of financial services. We want to encourage more innovative ways of delivering important information presented in a way that consumers can understand and act on."
Mr. Price added, "At the same time, we believe electronic disclosure could reduce costs for providers and enable them to better align their disclosure with consumer preferences."