The Federal Government has begun discussions with the Financial Services Working Group (FSWG) on how to simplify product disclosure statements (PDS).
Talks were opened on Friday by the Minister for Superannuation and Corporate Law Nick Sherry.
The FSWG is made up of of delegates from the Treasury, ASIC, Department of Finance and Deregulation.
The discussions will first target simplifying PDS on the Government's soon to be implemented First Home Savers Account (FHSA).
The FHSA is designed to be a superannuation type account made by the government to help first home buyers save for a home.
Superannuation funds, banks and other financial institutions will be able to offer these accounts from July 1, 2008.
"By focusing its initial work in the FHSA we are taking steps to make sure this important new policy is delivered clearly and simply to all who wish to access it," Sherry said.
"Complex and lengthy documents, often between 50 and 100 pages, are unreadable to most people," Sherry said.
"Unreadability of disclosure documents has been a factor in some investors' losses."
New discussions on other products will be disclosed later by the Government.
