29 February 2008

Financial Disclosure Simplification Begins

The Minister for Superannuation and Corporate Law, Senator the Hon Nick Sherry, today opened the first session of the working group established to deliver simpler and more readable financial information for consumers.

"The Government committed to get the process of simplifying product disclosure statements underway as a priority, and now we're delivering on that commitment through the Financial Services Working Group.

"I am very encouraged by the number of stakeholders from across the financial services sector that have attended today's information session to find out more about the Working Group and what it has set out to achieve," Minister Sherry said.

On February 5, 2008, Minister Sherry and the Minister for Finance and Deregulation, the Hon Lindsay Tanner MP, announced the formation of the Working Group to look at a number of key issues associated with financial product disclosure and advice. The Working Group involves officers from Treasury, the Australian Securities and Investments Commission and the Department of Finance and Deregulation.

Working Group representatives explained that it will initially focus its efforts on the development of a short form disclosure document for the First Home Saver Account, which the Government announced earlier this month.

"Today's event provided an opportunity for representatives from the financial services industry and consumer groups to gain a greater understanding of the Working Group's mandate and its goal of improving the ability of consumers to compare products and make informed decisions.

"By focusing its initial work on the First Home Saver Account, we are taking steps to make sure this important new policy is delivered clearly and simply to all who wish to access it," Minister Sherry said.

Experience gained in this area will be useful to apply going forward in other sectors.

A timetable will be established for other products.

"I expect that the Working Group will continue to engage with relevant stakeholders in progressing the various aspects of its work," Minister Sherry said.