Financial Products and Short‐Form Disclosure Documents ‐ Challenges and Trends

Abstract

Recent years have seen a trend in many jurisdictions towards the adoption of short-form disclosure documents for retail financial products. This paper analyses the challenges and trends in relation to short-form disclosure documents from a comparative perspective. Developments in the following markets are examined for this purpose: Australia, New Zealand, the European Union (‘EU’), Hong Kong, Singapore and Canada. The objectives of this paper are to review the international trend towards short-form disclosure documents and the policy reasons behind the trend; to examine the different approaches that have been adopted by the selected jurisdictions; and to identify the criteria and the factors that should be taken into account when jurisdictions consider which approach to adopt. In this way, the paper seeks to assist regulators in determining appropriate responses and strategies through a guide to the approaches in the selected jurisdictions, the legislative and policy underpinnings and the short-form disclosure documents themselves.