The work seeks to promote confident and informed investors and financial consumers, noting the important role that advertising can play in helping investors to make important financial decisions.

The Chairman of ASIC, Greg Medcraft said: ‘The objective of our guidance is to help promoters and publishers present advertisements that are accurate, balanced and help consumers make decisions that are appropriate for them.’

‘While our guidance covers issues of good practice in advertising, it may also help promoters and publishers comply with their legal obligations not to make false or misleading statements or engage in misleading or deceptive conduct. Our guidance also indicates to industry the types of advertisements we may focus on more closely,’ he said.

ASIC’s guidance also contains real examples of where we have raised concerns with promoters of financial products or services and as a result their advertisement has been changed.

Comments on the consultation paper and draft regulatory guide are due by 25 October 2011.

To read the guidelines, click here.

The post ASIC: best practice guidance for advertising financial products & services appeared first on AdviserVoice.

The Abacus advertising campaign included representations, by way of a comparison with major banks, about home loan savings that could be achieved with a credit union or building society.

ASIC Commissioner Dr Peter Boxall said ASIC was particularly concerned about how the comparison was presented.

‘ASIC raised with Abacus that they may not have clearly and prominently disclosed the types of interest rates and the selected number of credit unions and building societies used in the comparison.

‘We were also concerned that the comparison may not have used an appropriate point-in-time selection to calculate savings, and that consumers were not warned that any savings may be affected by future changes in interest rates,’ Dr Boxall said.

While Abacus maintain that the advertisements in their original form were not misleading, they agreed that in future advertisements they would clearly disclose the types of rates used in any comparison and the selective nature of any comparison. Where a claim is made about future savings, Abacus will disclose the fact that interest rates will change in the future, and that any potential savings may be affected by such change.

Abacus will also ensure that any comparisons have a reasonable basis, including the appropriate selection of points in time – and the use of reasonable assumptions – when calculating example savings.

ASIC acknowledges Abacus’ cooperative approach responding to ASIC’s concerns.

Background

Abacus is the industry body representing the Australian mutual sector, comprising credit unions, mutual building societies and friendly societies.

The post Abacus reviews advertising in response to ASIC’s concerns appeared first on AdviserVoice.