Fearsome paper cost of regulation

Richard Gilbert

Financial services regulation generated over 100 million pages representing 530 tonnes of paper in superannuation confirmation documentation last year, according to the Investment and Financial Services Association.

IFSA chief executive Richard Gilbert was seeking to drive home the cost of regulation at the same time as welcoming a move by the Australian Securities and Investments Commission to release a consultation paper aimed at increasing the use of e-mail and the Internet with respect to financial services documentation.

Gilbert said it had always been intended that electronic documents would become a primary method of communicating with members under Financial Services Reform and that some member companies of IFSA had already taken limited steps in this direction.

However, he said the release of the consultation paper by ASIC signalled that the path would soon become clearer.

“This is a necessary step if we are to continue to meet customers’ communication expectations in the 21st Century,” Gilbert said.

He said IFSA estimated that over 100 million pages of paper or 530 tonnes of paper were sent out last year for superannuation confirmations alone, resulting in over $85 million in administration cost.

He said that industry also sent out in the order of 35 million annual reports to super and non-super investors.