New digital disclosure measures for communicating financial services information to customers have been released by the Australian Securities and Investments Commission.
Regulatory Guide 221 – Facilitating digital financial services disclosure sets out new guidance and measures to make it easier for businesses to provide financial services disclosures through digital channels. ASIC says the guide is also designed to encourage more innovative customer communication about financial products and services.
The changes to the disclosure rules mean PDS and other documents are to be delivered to consumers digitally, as the default option. The guide also:
- Explains how, under the Corporations Act, most disclosures can be delivered digitally
- Outlines ASIC’s view that in most cases it will be clear from the context that a client has provided or nominated their electronic address for the purpose of receiving disclosure under the Corporations Act, and no higher standard of consent is required to send to an electronic address compared to non-electronic methods
- Describes the relief available to facilitate the delivery of disclosures by making the disclosure available digitally and notifying the client
- Describes the relief available to remove potential barriers to more innovative disclosure
- Sets out ASIC’s ‘good practice guidance’ on digital disclosure
ASIC Commissioner, John Price, said: “The measures announced today respond to changing consumer preferences, with ever increasing numbers of people transacting digitally. Almost 15 million Australians now have a home internet connection and 68% of those online are using three or more devices to access the internet.”
He said making digital the default option for disclosure would reduce the costs of printing and mailing for businesses, while preserving choice for those consumers who still wish to receive paper.
“ASIC wants industry to harness the opportunities of digitisation and is encouraging the use of more engaging forms of communication using digital media – interactive, video and audio. This can boost consumer understanding of financial services and products,” Mr Price said.
Click here to view the new guidance (RG 221).
