ASIC seeks dollar disclosure feedback
By Craig Phillips
The Australian Securities andInvestments Commission (ASIC) has released details of the new dollar disclosure obligations that product issuers will face as of January 1, 2005, and is inviting industry feedback ahead of formally mandating the proposals.
The policy proposal paper sets out how ASIC intends to monitor adherence to the dollar disclosure provisions together with how it will use its power to make determinations.
The regulator announced a series of amendments to its ‘good practice’ model back in June, however, the model will now be tested in consultation with the industry.
The paper discusses, among other things, how ASIC will administer the dollar disclosure provisions; the situations it may consider issuing determinations on a class basis; how applications for determinations will be assessed; and the regulator’s approach to transition.
“The dollar disclosure provisions require dollar disclosure other than in narrow circumstances. Even in those circumstances, the law requires clear disclosure using percentages or descriptions, and also requires worked dollar examples,” ASIC states.
The peak regulator says it will use its determination powers sparingly.
ASIC expects licensees and product issuers to have processes in place to comply with the impending disclosure obligations.
The regulator’s policy proposal asks for information about the types of difficulties industry participants are facing, and will consider whether it is unreasonably burdensome for them to fully comply by January 1, 2005.
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