ASIC trims fat from financial advice paperwork
Thick documents accompanying financial advice may be a thing of the past following the release of new guidelines by the Australian Securities and Investments Commission. ASIC yesterday urged financial advice providers to keep statements-of-advice “short and simple”.
ASIC's move to simplify complex disclosure documents came at the behest of financial planners and stockbrokers, who complained the documents were not easily understood by consumers and were expensive to produce.
ASIC will also allow providers who already have relationships with clients to keep their disclosure documents limited to one or two pages.
The Financial Planning Association said the new guidelines will allow planners to produce shorter, more consumer-focused documents. The Consumer Law Centre said any move to make information more transparent so consumers can make choices more easily is welcome.