New Zealand's Financial Markets Authority (FMA) today released a set of guidelines on how firms should be advertising financial products.
According to the regulator, the format of some advertising is limited or restricted (such as social media tiles or banner advertisements on webpages). This constrains the disclosure information that can be displayed, and firms often hyperlink to a landing page with required disclosure information.
The FMA expects firms to ensure "click through" ads don't create a misleading impression, the messaging in both the initial ad and landing page must be consistent, and all required disclosures should be well displayed on the landing page.
"Advertising can significantly influence people's investment decision making, so it's critical that firms' marketing materials don't mislead or confuse consumers,”Liam Mason, FMA General Counsel, said.”We want firms to provide a balanced message so the overall impressions and expectations formed by investors are realistic.”
The guidance focuses on how 'fair dealing' requirements in the Financial Markets Conduct Act apply to advertisements for financial products. Fair dealing provisions apply broadly to conduct relating to anyone offering financial products to the New Zealand public.
The provisions prohibit misleading or deceptive conduct, including conduct which is likely to mislead or deceive; false, misleading or unsubstantiated representations; and offers of financial products in the course of unsolicited meetings.