In May this year, ASIC’s Deputy Chairman Peter Kell addressed the Mortgage & Finance Association of Australia and told us exactly what the regulator would be looking at in relation to consumer credit.
ASIC’s keys areas of attention in relation to consumer credit are going to be:
- Responsible lending
- Loan fraud
- General obligations relating to conflicts of interest
- Property investment and lending through SMSFs
It will come as no surprise to learn that ASIC regards potentially misleading advertising as a no-no, and they have been demonstrating this by being progressively more vigorous in this space over recent months – in fact, ASIC has acknowledged that it is taking more civil actions for misleading advertising.
Along with the Australian Consumer Law, the Australian Securities and Investments Commission Act prohibits misleading and deceptive conduct under consumer protection provisions.
Whilst we understand the importance of advertising, the regulatory authority has also acknowledged the role advertising plays in informing consumers of the choices available and facilitating consumer comparisons between financial services and products. It also warns that it will protect consumer rights from misleading and deceptive behaviour.
Our Guideline on Advertising financial products and advice services provides an overview of the requirements for advertisements – download it below.
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