ASIC finds that over the past decade the reliance on mandated disclosure and warnings has proven to be ineffective.
Banks and financial services companies that bury consumers in a complex"sludge" of disclosure and fine print face a crackdown by the corporate regulator.ASIC deputy chair Karen Chester says disclosure concerns relate to"almost all financial products"
"Consumers have a right to feel like they're glazing over especially when it comes to disclosure in the financial system," Ms Chester said. Ms Chester says concerns about effective disclosure were highlighted in the Hayne royal commission but also in previous financial systems inquiries by Stan Wallis in 1997 and David Murray in 2014.
"Even when you are dealing with a consumer with higher financial literacy, disclosure didn't really shift the dial. It is really difficult for people to maintain attention and then be able to objectively identify what's the best product for them."
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