Sherry reinforces documentation reform

Nick Sherry

Tasmanian Senator and Minister for Superannuation and Corporate Governance Nick Sherry has vowed to reform financial services disclosure documentation.

Speaking at the Financial Services Partners Prestige Partner Meeting, Sherry confirmed the formation of a working group whose aim would be to undertake a “total review on the simplification of current disclosure documentation”.

“The current documentation being issued over the last three to four years has been lengthy, costly, complex and in a way unreadable for ordinary consumers,” he said. “I take the very simple view that an unreadable document is not a useful document.”

According to Sherry, the working group, which is comprised of mainly senior members within the Treasury, will examine the reasons behind documentation length.

“This may include legal factors, or the inclusion of several products in the single document, and the complexity of products. So the working group will advise on how we can remedy the situation.”

During the speech, Sherry outlined other issues that he would tackle in the year ahead, in particular, interest rates and rising concerns over mortgage stress.

“The central challenge for the Labor Government in an economic sense is we intend to keep a very close eye on controlled inflation. Increasing inflation leads to an upward pressure on interest rates, and one of the key ways in which we’re going to do that will be reflected in the Budget to be handed down in May,” Sherry said.

“We intend to be very tough on expenditures, with a hard line approach to savings … that will involve $10 billion in savings over the next three years.

“I thought this important to mention, as we are determined to be a fiscally responsible government.”