Advertising your financial wares

Finance Update

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Welcome to the fourteenth in our series of tips and insights that aim to help ensure you're ready for the challenges and opportunities posed by the Financial Markets Conduct Act (FMCA).

Advertising your financial wares 

The good news about promoting your financial products under the FMCA is that the law is simpler - less prescription, and no need for the director certificates required under the old regime. 

The FMCA is principles based. It includes the familiar no misleading or deceptive conduct or false or misleading representations in promoting financial products and services, as well as the more recent requirement that all representations are not just correct, they are actually substantiated. 

So it's simpler, but the Financial Markets Authority and supervisors will be even more interested in ensuring that advertising complies with the new laws, especially now that issuers have to be really concise with what they say in their product disclosure documents. 

It's as important as it ever was to have tailored and effective processes to ensure that what you say in advertising is correct and compliant. Issuers (and their boards) need to take action, making sure that diligence processes make the necessary inquiries and take the proper steps to ensure compliance. The main point of advertising diligence is getting it right. A spin off is that, if you've acted 'reasonably', it can also be a defence under the FMCA.

We are happy to work with you to design and review your diligence processes to right-size them to the new regime and your business. If you require assistance, please contact us.