Financial Advertising Code now applies

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Financial Advertising Code now applies

13 JUN 2022

The Code updates the wording of the Principles of Financial Advertising – the standards expected by the Advertising Standards Authority (ASA) in Financial Advertising – (Principles), which are now framed as:

Financial Advertising Code now applies
  1. Social Responsibility – Financial Advertising must be prepared and placed with a high standard of social responsibility to consumers and society.
  2. Truthful Presentation – Financial Advertising must be truthful, balanced and must not be misleading.

The Code also introduces Rules in relation to the Principles, which specify how the Principles are to be interpreted and applied.

Principle

Rule(s)

Social Responsibility

  • The Code states that Financial Advertising must be easily understood by consumers.

Truthful Presentation

  • Financial Advertising must not mislead or be likely to mislead, deceive or confuse consumers, abuse their trust or exploit their lack of knowledge. Misleading may be by implication, inaccuracy, ambiguity, exaggeration, unrealistic claim, omission, false representation or otherwise.
  • Advertisements must not use tests, surveys, research results or quotations from technical and scientific literature in a manner that is misleading or deceptive.

The Code also updates the Guidelines in relation to the Principles, which provide the information and examples included to explain the Rules.

Finally, the Code also amends the existing definition of ‘Financial Advertising’, which is now framed in the new Code as “any message, the content of which is controlled directly or indirectly by the Advertiser, expressed in any language and communicated in any medium with the intent to influence the choice, opinion or behaviour of those to whom it is addressed and is for the purpose of promoting a Financial Product or Service”.

 The ASA updated this definition to make it “clearer and in more detail for industry and consumers to understand”. The original wording used in the definition of ‘Financial Advertisements’ in the Code for Financial Advertising was complex. The new definition of ‘Financial Advertisements’ is much simpler and more straightforward. Download your free copy of the Code and get in touch with our team if you have any questions.