On 19 December, regulations to implement refinements to financial services regulation (FSR) came into effect. Further amendments to FSR will be considered in the new year taking into account submissions received on the Government's original proposals and the draft regulations.
In most cases, the regulations make it clear that the refinements are alternatives to current requirements, which should reduce the compliance for industry participants.
Tailoring financial services guides (FSGs) – Proposal 1
The regulations allow licensees and authorised representatives to tailor their FSG to include only information about financial services and products they will or are likely to provide to the client.
No FSG will be required if a product disclosure statement (PDS) is provided, which contains information required to be in the FSG. However, an additional statement will have to be provided at the same time as the PDS, covering all the information required to be in the FSG. This statement must be up-to-date, contain the level of information reasonably required by a retail client deciding whether to acquire the product, and be worded in a clear, concise and effective manner. The additional statement may also include additional information. Additional statements must be updated where circumstances change.
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