Financial Products and Short-Form Disclosure Documents: A Comparative Analysis of Six Jurisdictions

Capital Markets Law Journal, Volume 10, Issue 2, 2015

U of Melbourne Legal Studies Research Paper No. 710

28 Pages Posted: 17 Jul 2015

See all articles by Andrew Godwin

Andrew Godwin

Melbourne Law School

Ian Ramsay

Melbourne Law School - University of Melbourne

Date Written: July 16, 2015

Abstract

This article analyses the international trend towards the adoption of short-form disclosure documents for retail financial products through a comparison of six jurisdictions: the European Union, Australia, Hong Kong, Singapore, Canada and New Zealand. For the purposes of the analysis, ‘short-form disclosure documents’ are defined to mean disclosure documents in respect of which the maximum page length is prescribed, either on a mandatory or recommended basis. The comparative analysis suggests some important findings. These include the strong interrelationship between factors such as purpose, length, liability and language and the extent to which each of these factors, particularly purpose, influences the other factors. Each choice or setting involves certain tradeoffs and achieving a comfortable balance is not an easy task for legislators and regulators. In addition, the findings reveal the challenges that all jurisdictions have encountered in terms of incorporating the key features and risks of complex products into a short-form disclosure document. Finally, there is widespread recognition of the need to treat disclosure as part of a broader range of measures, including measures to improve the quality of financial advice and to increase investor literacy.

Keywords: short-form disclosure, financial

JEL Classification: K00, K22

Suggested Citation

Godwin, Andrew and Ramsay, Ian, Financial Products and Short-Form Disclosure Documents: A Comparative Analysis of Six Jurisdictions (July 16, 2015). Capital Markets Law Journal, Volume 10, Issue 2, 2015; U of Melbourne Legal Studies Research Paper No. 710. Available at SSRN: https://ssrn.com/abstract=2631382

Andrew Godwin (Contact Author)

Melbourne Law School ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

Ian Ramsay

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

Register to save articles to
your library

Register

Paper statistics

Downloads
111
Abstract Views
516
rank
251,153
PlumX Metrics