ASIC okays online – up to a point
The Australian Securities and Investments Commission (ASIC) has sought to clarify the law around the provision of Statements of Advice (SOAs) and Product Disclosure Statements (PDSs) via the Internet.
The regulator this week released a new regulatory guidance that it hopes will remove some of the legal concerns that have been felt by companies about using online delivery of the documents.
ASIC said that while the Corporations Act allowed for online delivery of financial services disclosures, some providers had been discouraged from doing so “because of uncertainty about what specific practices the law permits”.
Commenting on the regulatory guide release, ASIC deputy chairperson Belinda Gibson said she believed it would give financial services providers greater confidence in delivering financial services information online.
However, the documentation makes clear that financial services companies will still need to be careful about the manner in which they utilise the Internet for the delivery of documentation, including firstly seeking the permission of clients and customers and, where Statements of Advice are concerned, using more direct and secure methods than a simple hyperlink.
The regulator has stressed that it believes providers should always consider which form of delivery (paper or online) best suits their clients.
AUTHOR
Mike Taylor
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