Government to cut red tape

Chris Pearce

Regulations to allow ‘incorporation by reference’ in investor disclosure documentation have come into force, according to an announcement by the Federal Government.

The Parliamentary Secretary to the Treasurer, Chris Pearce, said the incorporation by reference is an important step in the Government’s move toward the simplification of Australia’s corporate and financial services regulatory system.

“Incorporation by reference permits financial services providers to incorporate certain information in the disclosure document, by providing a reference to where the information can be found, instead of reproducing such information in full each time in each disclosure documents,” he said.

According to Pearce, the changes will benefit consumers by reducing the length of the disclosure documents they must receive before making an investment decision.

The new regulations follow on from the Simpler Regulatory System Act 200’ in further reducing red tape.

Pearce acknowledged the contribution made by stakeholders, including industry and consumer groups that were consulted in both the drafting of the regulations and the Act.