The Institute of Finance Professionals says the need for two sets of documents to cover retail and sophisticated investors when raising money will be costly and confusing.
The group says the Financial Markets Conduct Bill needs to provide clearer guidance on how material information should be split between what is called a Product Disclosure Statement, and fuller documents placed online.
The statement is aimed at retail investors, while online documents will satisfy sophisticated investors, but the Institute told the Commerce Select Committee it prefers the documents to target one audience.
It says if there is a dispute over the documents, it's not clear which set of documents would prevail.
Chapman Tripp partner Roger Wallis says the simplified statement should be viewed as a starting point for investors to seek more information.
He agrees with the institute that the bill needs regulations, so market participants can understand how the legislation will work.