Chris Pearce, the Parliamentary Secretary to the Treasurer, today announced that regulations to allow for ‘incorporation by reference’ in investor disclosure documentation have come into force.
“Incorporation by reference is an integral part of the Government's overall vision for the simplification of Australia’s corporate and financial services regulatory system,” said Mr Pearce.
The incorporation by reference measure will benefit consumers, as it will reduce the length of the disclosure documents they must receive before making an investment decision.
“Incorporation by reference permits financial services providers to incorporate certain information in the disclosure document, by providing a reference to where the information can be found, instead of reproducing such information in full each time in each disclosure document,” said Mr Pearce.
Mr Pearce thanked the many stakeholders who contributed their views to the Government on this important measure to further reduce red tape in the interests of all Australians.
“The incorporation by reference regulations follow significant consultation with both industry and consumer groups, meaning that we can be confident the regulations are both practical and relevant,” said Mr Pearce.
The incorporation by reference regulations will further assist in reducing red tape, following implementation of other important measures in this area including those in the Simpler Regulatory System Act 2007 (the Act).
Mr Pearce noted that the principles underpinning the current financial services regime have widespread support, a view which was reinforced in consultations both on the drafting of the Act and on the drafting of the incorporation by reference regulations.
MELBOURNE
23 August 2007