Avant tightens marketing policy
Avant has agreed to update its internal marketing guidelines in line with the Australian Securities and Investments Commission's (ASIC) Regulatory Guide 234 after ASIC expressed concerns that some advertising was misleading.
ASIC said a recent policy holder mail-out included a table creating the impression Avant's policy provided more cover than its competitors in some areas, which was not necessarily true.
References to "unpaid healthcare activities" and "supervised activities" were not qualified to alert policy holders to exclusions, according to ASIC.
"Any comparison of benefits should be accurate and balanced and have a reasonable basis," ASIC commissioner Peter Kell said.
Although Avant included a footnote urging customers to consider the wording and implications of the letter, Kell said pointing to further information in a product disclosure statement (PDS) was insufficient to correct a misleading impression.
"Qualifications should be given sufficient prominence to effectively convey the key information," he said.
Avant has agreed to include information regarding exclusions from cover, marry disclaimers with the information they relate to, cease using comparisons that do not accurately reflect the cover provided and update internal marketing guidelines in line with ASIC's Regulatory Guide 234: Advertising financial products and advice services: Good practice guidance.
Recommended for you
Shaw and Partners’ new national head of private wealth believes the biggest challenge for financial advisers right now is being able to deliver efficient advice delivery amid a complex regulatory environment and growing investment universe.
Global equity manager Orbis Investments has appointed a head of marketing from Capital Group as it becomes the latest manager to target advised retail investors.
While Australia prepares for the $3.5 trillion intergenerational wealth transfer, a Wilsons Advisory report suggests the ongoing gender imbalance in the advice profession could prove a challenge to this process.
Danielle Press, a former ASIC commissioner, is to chair a new AFSL committee set up by Sequoia which seeks to improve governance practices and review its approved product lists.
