ASIC has issued updated guidance on Financial Services Guides (FSG) and website disclosure information.
Key points for Australian Financial Services (AFS) Licensees that provide financial product advice or deal in a financial product for the purposes of implementing that advice
- removed the obligation for providing a FSG; and
- instead, they can rely on website disclosure information.
The updated guidance is contained in ASIC's Information Sheet 291, replacing ASIC's existing guidance on FSGs in Section C of Regulatory Guide 175.
Summary of website disclosure information requirements:
Who does the updated guidance apply to?
AFS Licensees can provide retail clients with website disclosure information instead of a FSG if:
- the financial service provided to the client is financial product advice;
- the financial service provided to the client is dealing in a financial product for the purpose of implementing financial product advice that was provided to the client;
- the licensee has made the information available on its website at the time the licensee was required to provide the client with a FSG; and
- the licensee has not given the client a FSG or something purporting to be a FSG.
The introduction of website disclosure information aims to provide AFS Licensees with greater flexibility in disclosing information that is otherwise required in an FSG.
What constitutes website disclosure information?
Licensees who:
- upload their FSG to the website; or
- circulate a hyperlink of the content to a retail client,
will be classified as providing website disclosure information.
Making website disclosure information available to retail clients:
The website disclosure must contain the statements and information required in an FSG as set out in section 942B of the Corporations Act 2001 (Cth) (Corporations Act) and must be made available on the AFS Licensee's website at the time the AFS Licensee would be required to give the client an FSG.
ASIC recommends AFS Licensees apply the good practice guidance outlined in Table 2 of Regulatory Guide 221 when making website disclosure information available to clients, including ensuring the information:
- is readily accessible, easy to understand and view i.e. not password protected or only accessible to clients who have created an account or have a subscription plan in place;
- is up to date;
- specifies the date on which the website disclosure document was prepared or last updated;
- is available as a printed or digital copy; and
- does not divert or distract clients from relevant information i.e. including features that divert clients from relevant information.
Publishing the FSG on the website as website disclosure information or sending a hyperlink to the content is an alternative to giving the FSG to the retail client in printed or electronic form.
ASIC encourages licensees to notify clients that website disclosure information is available on their website by including a link to the information via email to the client.
Format of website disclosure information?
Website disclosure information can:
- appear on different pages of the website;
- include written or graphic information; and
- be made available in a variety of formats e.g. PDF or Microsoft Word format.
Record Keeping Requirements
AFS Licensees must keep a record of each version of the website disclosure information that is made available to comply with their licence conditions and general conduct obligations under section 912A of the Corporations Act. Records must be held for 7 years from the date that the website disclosure information was published on the website.
Background Information
ASIC issued ASIC Corporations (Amendment) Instrument 2024/554 and 2024/809 in response to changes to FSGs that the DFBO Act makes. ASIC has also amended Pro Forma 209 so that AFS Licensees are required to meet record keeping obligations in relation to website disclosure information.
The DBFO can be found here: Treasury Laws Amendments (Delivering Better Financial Outcomes and Other Measures) Act 2024.
Further Reading
- Delivering Better Financial Outcomes package
- ASIC releases new and updated guidance in response to the DBFO Act
- Information Sheet 291– Financial Services Guide and Website Disclosure Information
- ASIC Corporations (Amendment) Instrument 2024/554
- ASIC Corporations (Amendment) Instrument 2024/809
- Treasury Laws Amendments (Delivering Better Financial Outcomes and Other Measures) Act 2024
- Australian Financial Services Licence Conditions – Pro Forma 209
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.
