The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko has issued new guidance on how firms should be advertising financial products.
The regulator consulted on proposed guidance on advertising last year. The final guidance, published today, reflects feedback from consultation and sets out three key principles for organisations to consider when advertising financial products or services:
- What is the overall impression created by the advertisement when viewed for the first time?
- Ensure the advertisement includes all relevant information, as omissions can be misleading, deceptive or confusing
- Any claims in the advertising must be substantiated.
The guidance specifies that advertisements should:
- be truthful and accurate;
- take care when comparing different products;
- balance risk and reward;
- take care with phrasing and jargon;
- ensure forecasts are based on reasonable and supportable assumptions;
- not overemphasise performance;
- prominently display warnings and disclaimers;
- clearly disclose fees and costs;
- not claim to be endorsed, approved or regulated;
/Public Release. View in full here.
