A POLICY paper called Dollar Disclosure has been released for public comment setting out how the Australian Securities and Investments Commission plans to administer new dollar disclosure provisions.
From January 1 financial services providers will be required to disclose all fees and benefits attached to their products in dollar and cent terms to make it easier for consumers to compare products.
The ASIC paper discusses:
- How it will administer the dollar disclosure provisions;
- The situations ASIC might consider issuing dollar disclosure determinations on a class basis;
- How applications for determinations will be assessed by the ASIC; and
- ASIC’s approach to transition.
The commission expects licensees and product issuers to have plans for complying with the dollar disclosure obligations underway.
A six-month transition period exists for licensees and product issuers to make any necessary adjustments to their systems, processes and documents so they can comply with the dollar disclosure obligations.
According to ASIC some licensees and product issuers have suggested they will have trouble fully complying with the dollar disclosure obligations by January 1.
ASIC’s policy proposal asks for information about the types of difficulties industry participants are facing so it can decide whether it is unreasonably burdensome for them to fully comply by January 1.
ASIC will announce its decision on the transitional issue by the end of September.