The Finance Brokers Association of Australia (FBAA) has reminded members that all marketing must comply with ASIC’s Regulatory Guide 234: Advertising financial products and services (including credit): Good practice guidance, as ASIC consults on updates to the regime.
In a letter to FBAA members, managing director Peter White (pictured left) urged brokers to ensure all advertising is completely factual, that every claim can be substantiated, and that professional advertising standards are followed, so brokers ‘abide by the law, best practice and represent the FBAA and the industry in a professional manner.
ASIC is ramping up its scrutiny of digital and social media promotions, amid concerns about “finfluencers”, online spruiking, flashy headline claims, and the promotion of complex structures like trusts and SMSFs via short content on platforms such as Facebook, Instagram, and TikTok.
For brokers, this means routine marketing – from social tiles and website copy to “educational” posts and online calculators – is squarely in the regulator’s sights.
FBAA regulatory compliance specialist David Carson (pictured right) said ASIC’s review of RG 234 is heavily informed by past enforcement.
“It looks like ASIC's main objective in revising the guidance was to introduce more examples based on enforcement action they have been successful in,” Carson said.
Recent cases cited by ASIC show how easily broker ads can cross the line, including promotions using calculators that implied borrowers could “pay off their debt sooner” without clearly stating that “considerable additional repayments” were required, and headline claims such as “100% success rate” that risk misleading consumers about approval outcomes.
White urged members to interrogate their own marketing before it goes live by asking: “Is all wording factual and unable to be misinterpreted?” and “Have I provided all of the information relevant to the claims I am making or have I omitted details?”
Carson’s advice to brokers is deliberately simple: “Remember this simple rule: Only say things that are factually true, and if you say something that you cannot substantiate as factually true, then don’t say it at all.”
FBAA has thrown its support behind the Mortgage & Finance Association of Australia’s submission on RG 234, highlighting the need for a united industry voice to protect brokers’ reputation and keep conduct beyond reproach.
FBAA says it will provide further guidance to help ensure brokers comply with the law, follow best practice and represent the industry professionally.
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