ASIC has released a consultation paper about credit advertising to promote good practice and help industry comply with their legal obligations when advertising credit products and services.
Consultation Paper 178 Advertising credit products and credit services: Additional good practice guidance (CP 178), released today, reflects ASIC’s strong focus on ensuring accurate advertising that does not mislead financial consumers and investors.
‘ASIC recognises the important role that advertising can play in helping investors make financial decisions and a focus on ads is part of ASIC’s drive to promote confident and informed consumers’, said ASIC Commissioner Peter Kell.
‘Ads should give balanced information to ensure the overall effect creates realistic expectations about a credit product or service’, Mr Kell said.
Mr Kell reminded promoters of credit products and services, and publishers of advertising for these products and services, that ASIC will be regularly reviewing ads, noting recent actions taken against some banks for misleading advertising about credit card limit increases and home loan discounts.
‘ASIC wants to help industry understand their obligations. However, we will also take action against financial institutions who engage in misleading marketing. We have a greater range of penalties that we can seek in such cases compared to the past’, Mr Kell said.
‘Banks, credit unions, mortgage brokers and other players in the credit industry have clear legal responsibilities when it comes to advertising which they need to take seriously. We hope this consultation process will help to build clear expectations among industry and better outcomes for consumers.’
ASIC’s guidance also contains real examples of the concerns raised with promoters of credit products or services.
CP 178 relates specifically to credit facilities and builds on Regulatory Guide 234 Advertising financial products and advice services: Good practice guidance (RG 234) which was released earlier this year and applies to all types of financial products.
Comments on the consultation paper and draft regulatory guide are due by 6 August 2012.
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