ASIC warns financial services firms over ads
The financial services regulator has reminded the industry that advertising campaigns would be closely watched and regularly reviewed.
The Australian Securities and Investments Commission (ASIC) commissioner Peter Kell said the regulator would take action when companies do not comply with the law.
"Advertisements should give balanced information to ensure the overall effect creates realistic expectations about a financial product or service," Kell said.
His comments follow RAMS Financial Group's amendment of its advertising campaign, which ASIC deemed potentially misleading.
The ads claimed the RAMS Saver account was offering a 5.75 per cent interest rate which (under certain conditions) included a 0.8 per cent per annum bonus.
The campaign, however, failed to disclose that in order to achieve the monthly bonus rate, consumers could not make any withdrawals from the account during the month.
RAMS has amended its advertisement and is also taking steps to clarify its product information with customers, ASIC stated.
The regulator has recently released a regulatory guide on advertising financial products and advice services, which Kell said would "help industry participants understand their obligations".
"We are also sending a message that we will take action in response to misleading ads for financial products and services," he added.
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