REGULATORY GUIDES

Australian Securities & Investment Commission

Australian Securities & Investment Commission

Introduction

The ASIC 'Australian Securities & Investments Commission' is an autonomous commonwealth body held by the government. ASIC functions its regulations in the financial sector through controls over the financial services. The functionality that the ASIC recognizes and administers is under its own Commission Act, which is better known to be ASIC Act. The Act is developed in order to uniformly uphold the law for Securities and Investments in Australia under measures that are uniform, effective, and quick for the purpose of confidently promoting the informed participation of the consumers and investors in the financial system. The sole objective for the establishment of the functionalities is in regards to source complete information to the public about companies and other organizations in order to enhance the performance of the overall financial structures and systems and other entities attached within the system.

The description about the functions and operations of Australian Security & Investment Commission is important because of the fact that it will help provide a linkage between the regulatory guides established by the ASIC in regards to disclosures offered in the financial systems. Moreover, the chosen regulatory guides would lighten up knowledge over the disclosure of Product Disclosure Statements PDS. The guides that are established by the ASIC are generally for the people who are responsible for the disclosure obligations and for Product Disclosure statements, which include Australian Financial Services, product issuers, and authorized representatives in the financial sector providing financial services.

The Regulatory Guides provides essentiality to the preparers of the policies in the financial system and for those who are involved in preparing Product Disclosure Statement PDS. Moreover, regulatory guides' gives policy guidance on preparing a PDS that act in accordance with the requirements of the PDS under the 2001 Corporations Act (Banasik, 2010, pp. 387). The guides enable principles for disclosure under which the organization aims to monitor the exercise and utilization of PDS and implement the requirements held by the PDS. In addition, the regulatory guides established by the ASIC are for the help of an investor to make the decision through the recognizing the product disclosure statements regarding a financial product, as the it is an obligation for the authorities and service providers to operate under the Corporation Act established by the ASIC of maintaining PDS for the investors help.

Discussion

The paper aims to discuss the regulatory guides and the stated principles in the guides set by the ASIC regarding the obligations of undermining the product disclosure statements by the authorities and service providers in the financial sector. The guides and the principles are set according to the needs of the investors in order to help provide them with appropriate product disclosure statements relating to the products offered for the investment. Through the Corporation Act under which the PDS works, realize opportunities for the investors to avail transparency in the financial system. Moreover, this obligatory Act enhances the system with uniformity, effectiveness, efficiency, and quick responses in the financial systems, which ...