The Finance Brokers Association of Australia (FBAA) has issued a warning to members to ensure all advertising complies with ASIC’s Regulatory Guide 234 – Advertising financial products and services (including credit): Good practice guidance.

In an email distributed across its national membership, the FBAA reminded members to only say things that are completely factual, ensure any claim can be substantiated, ensure that context and details included in any advertising are factually correct, and abide by professional advertising guidelines.

The FBAA has also backed comments by the Mortgage & Finance Association of Australia and its recent submission to ASIC regarding the update, noting that there is an obligation to speak as one voice when it comes to protecting the industry’s reputation and ensuring that finance and mortgage brokers are beyond reproach when it comes to abiding by regulations.

The FBAA’s regulatory compliance specialist David Carson said while he doesn’t expect the regulator to significantly change the guidance, it was a timely reminder to brokers that they are being watched.

“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,” he said.

Mr Carson said the solution for brokers was 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.”