In responding to concerns about mis-selling to retail investors, Australia has traditionally relied on procedural safeguards of choice, primarily mandatory disclosure obligations, combined with measures to improve the quality of financial advice. More recently, recognition of the limits of disclosure in promoting better decision-making by retail investors has led to new substantive obligations on issuers and distributors to consider ‘suitability’ in the design and distribution of financial products. These initiatives have parallels with the mandatory statutory standards of ‘satisfactory quality’ applying to the supply of goods to consumers. This chapter considers these developments, and also the continued relevance of mandatory disclosure and the role of technology in improving the efficacy of this strategy in protecting retail investors.
You are not authenticated to view the full text of this chapter or article.
Get access to the full article by using one of the access options below.