Social media a risky game
A financial services lawyer has advised businesses in the sector to familiarise themselves with media laws and regulations to avoid getting in trouble with the regulator.
The Fold Legal's Charmian Holmes has pointed to the Australian Securities and Investments Commission's (ASIC's) recent crack-down on a number of financial services and credit businesses whose website and social media posts contained misleading content.
The regulator has been particularly proactive about information that incorrectly states the interest rates for loans and savings accounts, misleading claims about self-managed super or inducing investors without disclosing all of the risks, Holmes said.
In order to avoid a run-in with the regulator, she advised financial services and credit businesses to abide by print and TV media laws and regulations when using social media or posting content on their website.
"The main thing to be aware of is that you must represent your business and its services honestly and accurately," Holmes said.
"If what you say about your products and services on your website or social media pages is likely to mislead or deceive, fines, penalties, corrective advertising, refunds and other sanctions can apply."
Keeping the website information up-to-date at all times, avoiding comparisons and proper disclosure are some of the things businesses can do to avoid ASIC's attention, she added.
"In a nutshell, ASIC expects you to honestly and accurately describe your products and services," Holmes said.
"Everything you do and say about your business, your services and your products on your websites and on your social media accounts should therefore be a true reflection of your offering."
AUTHOR
Milana Pokrajac
Recommended for you
Australia’s largest licensee has seen the biggest number of adviser losses over the past week, while the expected wave of new entrants has boosted overall adviser numbers.
Iress has increased its forecast adjusted EBITDA by $5 million for the 2023/24 financial year in light of the sale of its platform business to Praemium and hinted at a return to dividend payments.
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
New Insignia Financial CEO Scott Hartley has detailed the impact of the Godfrey Pembroke exit and the progress in resetting its financial advice model on its latest quarterly results.
