ASIC warns on advertising
Amid expressions of concern by some planners about the industry super funds latest "compare the pair" advertising campaign, the Australian Securities and Investments Commission (ASIC) has sent a clear message to advertisers that they need to prominently display any statements "qualifying" their claims.
ASIC deputy chairman Peter Kell has used an address to an Insurance Council of Australia forum to suggest that any statements qualifying an advertising headline need to be obvious to those viewing or reading an advertisement.
"It is our view that the more qualifications that are required to balance the information contained in the headline claim, the clearer and more prominently placed the qualification should be," he said.
Kell said that, in some cases, "it may be that certain forms of advertising are simply not appropriate if qualifications cannot properly be explained".
The ASIC deputy chairman focused his speech on advertising in the insurance industry and said the regulator had taken a more proactive approach to the regulation of advertising across the financial services sector in recent years.
"We are actively reviewing insurance advertising and contacting individual insurers where we consider that the advertising is potentially misleading," he said.
AUTHOR
Mike Taylor
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
