The corporate regulator is planning to allow disclosure via email and Internet hyperlinks, which will slash the length of documents issued by the financial services industry.
Technology would make disclosure interactive, user-friendly and save businesses cash, ASIC said.
“Disclosure should be focused on investor needs. We want to facilitate access to financial information in the format that investors find most useful,” ASIC deputy chairman and Retail Investor Taskforce head Jeremy Cooper said.
“Used effectively, we believe that technology can enable more effective communication about financial services and empower consumers.”
According to the Australian Bureau of Statistics, 64 per cent of households had Internet access.
Companies will be able to notify clients via email that financial services disclosure information is on a website or by emailing them a hyperlink, if the proposal is adopted.
The corporate watchdog is aware electronic delivery of information may open up providers to ‘phishing’ and ‘pharming’.
“We also recognise that using email and the Internet to provide information may expose consumers to risk, including Internet scams or fraud,” the ASIC consultation paper said.
“However, on balance, we think the advantages of using email and the Internet to send information outweigh the disadvantages.”
ASIC has also proposed relief to enable trustees of superannuation entities to use a website as the default method of delivering annual superannuation information.
The proposed relief will mean annual superannuation information is treated in much the same way as company annual reports.
Investment and Financial Services Association (IFSA) chief Richard Gilbert welcomed the move.
“IFSA estimates that over 100 million pages of paper or 530 tonnes of paper were sent out last year for super confirmations alone, resulting in over $85 million in administration costs,” Gilbert said.
ASIC is keen to hear feedback on the likely compliance costs, the effect on competition and other impacts, costs and benefits.
Submissions should be e-mailed to policy.submissions@asic.gov.au by May 28.
