ASIC has released its policy proposal regarding new dollar disclosure obligations.

Dollar disclosure will be required from 1 January 2005. Under the dollar disclosure provisions, providing entities and product issuers will be obliged to disclose various fees, benefits, costs and interests as amounts in dollars in:

Statements of Advice (SOAs);
Product Disclosure Statements (PDSs); and
periodic statements.

Unless ASIC makes a determination that, for example, dollar disclosure is not possible, fees and benefits must be disclosed as amounts in dollars.

The policy proposal paper sets out how ASIC plans to approach the dollar disclosure provisions together with how it proposes to use its power to make dollar disclosure determinations.

ASIC expects licensees and product issuers to have plans for complying with the dollar disclosure obligations underway. The six-month transition period exists for licensees and product issuers to make any necessary adjustments to their systems, processes and documents so that they can comply with the dollar disclosure obligations. ASIC may consider extending the compliance date for a short period provided industry participants demonstrate they are taking steps to ensure they can comply with the dollar disclosure obligations.