17 February 2004

FSR Countdown - Twenty Three Days to Go

Parliamentary Secretary to the Treasurer, Ross Cameron, warned today that there were only 23 days till the end of the transition period to the Financial Services Reform Act.

"We are at the pointy end of the transition period," Mr Cameron said.

Addressing the ACT Division of the Association of Superannuation Funds Australia today, Mr Cameron said the transition period was progressing smoothly with ASIC having issued over 3,000 licences and assessing nearly 700 more applications.

While members of the financial services industry are preparing for operation in the new regime there continues to be concerns about excessive disclosure and lengthy documents.

"It is wrong to suggest that unnecessarily long documents must be provided to consumers in order to meet new FSR obligations. This is not correct. Bigger is not always better." Mr Cameron said.

"Simply dumping truck loads of information on a consumer will not always assist them. The FSR regime requires meaningful disclosure to consumers in a clear, concise and effective manner.

"Many industry participants may have ticked off their checklist of legal issues in drafting their documents, but in doing so have missed the point of FSRA. The aim of disclosure under FSR is to provide consumers with the information they need to make informed financial decisions." Mr Cameron said.

Mr Cameron also responded to concerns regarding ASIC's enforcement of the Act after 11 March.

"ASIC and the Government will continue to work with industry and consumers to ensure the smooth transition continues in the early operation of the Act. The FSR is a new world for the industry and it is on a learning curve. We will work in a co-operative way to ensure that remaining concerns are quickly addressed so that the full benefits of the FSR are realised by both industry and consumers."