The Australian Securities and Investments Commission (ASIC) today announced relief for product issuers who provide general financial product advice in advertisements. This relief is provided in Class Order [CO 05/835].

The relief completes one of ASIC’s projects implementing the Australian Government’s proposals paper Refinements to Financial Services Regulation (2 May 2005). ASIC is working on eight refinement projects as set out in ASIC’s Information Release [IR 05-22] ASIC provides details on financial services refinement projects (12 May 2005).

‘ASIC recognises that the requirements applying to licensed and unlicensed product issuers who provide general financial product advice in advertisements are currently inconsistent’, Ms Joanna Bird, ASIC’s Assistant Director of Regulatory Policy said.

Class Order [CO 05/835] creates consistency between these requirements where product issuers provide general financial product advice in advertising in the media and on billboards or posters.

‘Our relief is intended to ensure that consumers receive important information in a simpler and consistent manner’, Ms Bird continued.

The effect of [CO 05/835] is that no Financial Services Guide or general advice warning will be required where product issuers give general financial product advice in advertisements in the media or on billboards or posters. Instead, product issuers need only:

• include a statement in their advertisement that a person should consider whether the financial product is appropriate for them; and
• comply with the advertising disclosure requirements in s1018A or 734 of the Corporations Act 2001 (as applicable to the kind of offer document).

This relief is ASIC’s response to Refinement Proposal 5.2.

[CO 05/835] is available from the ASIC website at www.asic.gov.au or by calling the ASIC Infoline on 1300 300 630.

End of release

Download a copy of Class Order [CO 05/835].