Historically the regulation of financial products in Australia
has constrained innovative approaches to disclosure made possible
by rapidly advancing technology. After a period of consultation, ASIC has, however,
attempted to embrace the digital world by enabling certain
financial services disclosures to be provided digitally. This is
achieved by requiring investors to opt out of receiving digital
disclosures, together with a requirement they be notified how to
access the disclosure. This is a vast improvement upon the old
regulatory regime, under which the actual consent of the investor
was required to receive disclosure digitally.
In short, Instrument 2015/647 allows the
electronic delivery of financial services disclosure documents by
enabling electronic delivery to be the 'default' option for
disclosure, provided it has first sent a notice to the investor of
its intention to do so and the investor has not opted out of
receiving disclosures electronically. If the investor has not opted
out within 7 days, the provider may use the method described in the
Instrument to satisfy their disclosure
obligation. Instrument 2015/649 enables use
of innovative PDSs, FSGs and SOAs by giving relief from three
current requirements in the Corporations Act and the
Corporations Regulations 2001 that relate to page length
of PDSs, provision of copies of electronic disclosure documents on
request, and placement of the title of electronic disclosure
Appendix 1 to RG 221 provides a highly useful overview of how
providers can utilise the new ASIC reforms. We have extracted
some of the most relevant sections in the attached PDF document.
download to view the table.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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