ASIC grants dollar disclosure relief

The Australian Securities and Investments Commission (ASIC) has postponed the date by which fund managers and product providers have to comply with the new dollar disclosure regime to March 1 2005.

The move follows reports in Money Management in late September that the peak regulator would delay releasing its final policy statement on dollar disclosure until after the outcome of next week’s Federal election.

ASIC says it will now release its guidelines in November, with the final policy to specify the circumstances, if any, that it may determine dollar disclosure not feasible or unreasonably burdensome or contrary to client interests.

“ASIC’s relief recognises that adequate time needs to be given to finalising the application of the dollar disclosure regime so as to produce quality outcomes for consumers,” ASIC deputy executive director, financial services regulation Pamela McAlister says.

“Our transitional relief will give industry a short period of additional time to comply with the eventual final regime while acknowledging the challenges some participants will face when introducing new systems and amending their disclosure documents over the December to January holiday period,” McAlister adds.

The changes to disclosure rules had required fund managers and advisers to disclose fees in statements of advice and product disclosure and periodic statements in dollar terms by January 1, 2005, however these groups have now been granted three months of relief by ASIC.

The regulator says it does not expect to grant any further general extension to the date for compliance with the dollar disclosure regime.