Heavy compliance burdens plaguing the financial planning industry are likely to be reduced under federal government plans to cut red tape around disclosure.
Under draft corporations amendment regulations released yesterday, financial services licensees would not have to provide a financial services guide (FSG) or a statement of advice (SOA) if a client clearly rejects a product or the advice given.
Additionally, information already given to a client in a SOA would not have to be repeated in a subsequent SOA.
An FSG would be combined with a prospectus, similar to the provision which enables an FSG and Product Disclosure Statement to be combined.
The government also wants to remove the requirement to update an FSG where the change would relate to information that is not materially adverse, provided there is disclosure on how access can be made to the updated information.
Community-owned branches of banking licensees and individuals that are sub authorised by authorised representatives would be allowed to have a standard FSG.
The oral disclosure requirements that apply to FSGs and SOAs would be reduced for products with a cooling off period.
"These regulations will implement some of the more technical amendments to address issues that were identified during the Corporate and Financial Services Regulation Review process last year," the Parliamentary Secretary to the Treasurer Chris Pearce said.
The proposed regulations have been developed in consultation with industry and ASIC.
