RBA Cash Rate: 4.35% · 1AUD = 0.67 USD · Inflation: 4.1%  
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Example Interest Rates: Home Loan Variable: 5.20% (5.24%*) • Home Loan Fixed: 5.48% (6.24%*) • Fixed: 5.48% (6.24%*) • Variable: 5.20% (5.24%*) • Investment IO: 5.74% (6.40%*) • Investment PI: 5.49% (6.32%*)

Broker Advertising Compliance

ASIC's RG234 guide, title "Advertising financial products and services (including credit): Good practice guidance" is a good starting point for information on advertising compliance. In essence it makes a huge majority of financial adverts ever written non-compliant in one way or another. The (outdated) guide essentially consolidates half a dozen different pieces of legislation into an single manual.

The most significant compliance violation we've identified over and over in Facebook ads is by way of an interest rate without a comparison rate and disclaimer data. The same applies for claima (expressed in advert copy, such as " and I ended up saving over $124,000 on my mortgage"). In short, whenever a financial claim of any kind and in any manner is made you must also supply supporting rates, comparison data, and circumstances, and a disclaimer.

Section RG234.33 summarises expectations nicely: "Advertisements for financial products and credit products should give a balanced message about the returns, features, benefits and risks associated with the product. Advertisements should not overstate the potential benefits (e.g. investment returns) or create unrealistic expectations by giving undue prominence to the benefits compared with the risks." This expectation might take the form of your copy text or the images used in your ad (including text on images " this includes an interest rate).

Section RG234.101 states that "Advertising should not falsely represent that a product or product issuer has an endorsement or approval that it does not actually have." We've seen and taken screenshots of dozens of ads that are almost identical in every respect " including the fake testimonial written to illustrate the savings made via a broker. Unless the figures and information is provided by a real person, and the circumstances are not exaggerated in any way, your ad is non-compliant. The testimonial aspect of the ads must also be compliant with standard consumer law.

Advertising must comply with responsible lending obligations, best practice, and the underlying customer-first obligation.

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