𝐀𝐝𝐯𝐞𝐫𝐭𝐢𝐬𝐢𝐧𝐠 𝐆𝐞𝐧𝐞𝐫𝐚𝐥 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐩𝐫𝐨𝐝𝐮𝐜𝐭𝐬 & 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬

As a compliance specialist, I always read adverts from insurers, underwriting agencies, insurance brokers etc

I analyse the inherent compliance risk arising from the advertisement.

𝙈𝙞𝙨𝙡𝙚𝙖𝙙𝙞𝙣𝙜 𝙤𝙧 𝙙𝙚𝙘𝙚𝙥𝙩𝙞𝙫𝙚 𝙘𝙤𝙣𝙙𝙪𝙘𝙩

Advertising gives rise to the risk of engaging in misleading or deceptive conduct. Generally speaking, misleading or deceptive conduct leads a person into error. Engaging in Misleading or deceptive conduct is a reportable situation to ASIC.

ASIC’s regulatory guide RG 234, helps licensees & promoters comply with their legal obligations to not make false or misleading statements or engage in misleading or deceptive conduct.

𝙂𝙤𝙤𝙙 𝙋𝙧𝙖𝙘𝙩𝙞𝙘𝙚 𝙂𝙪𝙞𝙙𝙖𝙣𝙘𝙚

RG 234.16 contains an overview of ASIC’s good practice guidance for advertising in all media:

1. Returns, features, benefits & risks – a balanced message between benefits & risks should be provided. Benefits should not be given undue prominence compared with risks;
2. Warnings, disclaimers, fine print & qualifications should not be inconsistent with other content in an advertisement, including any headline claims;
3. Where a fee or cost is referred to in an advertisement, it should give a realistic impression of the overall level of fees & costs a consumer is likely to pay, including any indirect fees or costs;
4. Comparisons should only be made between products that have sufficiently similar features or, where an advertisement compares different products, the differences should be made clear in the advertisement;
5. Past performance information should be accompanied by a warning that past performance is not indicative of future performance;
6. Terms and phrases should not be used in a particular way by industry where these are not consistent with the ordinary meaning commonly recognised by consumers (e.g. ‘free’, ‘secure’ & ‘guaranteed’);
7. Advertisements should be capable of being clearly understood by the audience that might reasonably be expected to see the advertisements;
8. Where an advertisement draws attention to specific product features, the advertisement should be consistent with information contained in any disclosure document (such as a PDS);
9. Photographs & images should not contradict, detract from or reduce the prominence of any warnings, disclaimers or qualifications; &
10. Advertisements for a financial advice service should not create unrealistic expectations about what the service can achieve.

In certain media, adverts must refer to the PDS & TMD

𝙊𝙫𝙚𝙧𝙖𝙡𝙡 𝙞𝙢𝙥𝙧𝙚𝙨𝙨𝙞𝙤𝙣 𝙤𝙛 𝙩𝙝𝙚 𝘼𝙙𝙫𝙚𝙧𝙩

Assessing the overall impression is important. ASIC considers the following factors:

a) the subject;
b) the content;
c) the format;
d) the audience;
e) the media used; &
f) the likely effect of the advertisement