The Australian Securities and Investments Commission (ASIC) has invited public comment on its proposals about the regulation of investor directed portfolio services (IDPS).
The proposals will be relevant to all operators of IDPS and IDPS-like registered schemes and to advisers who recommend IDPS to clients. Also included are a set of proposals relevant to trustees of superannuation funds about the delivery of product disclosure.
ASIC's proposals aim to reduce complexity, barriers to entry and regulatory burden by removing regulation of IDPS operators beyond that applying to licensees performing dealing or custodial or depository services that do not involve an IDPS.
The proposal also aims to maintain adequate consumer protection by ensuring good advice about using an IDPS, adequate disclosure about IDPS and securities and financial products accessible through the IDPS, reliable client reporting, effective compliance controls and custodial and transactional integrity.
