The corporate watchdog is stepping up its scrutiny of advertisements for financial services in regional Australia, including mining boom towns, in a bid to weed out unscrupulous operators.
THE corporate watchdog is stepping up its scrutiny of advertisements for financial services in regional Australia, including mining boom towns, in a bid to weed out unscrupulous operators.
West Australian and Queensland mining areas including Kalgoorlie and Mount Isa are among areas to be targeted, along with the fraud hot spot, the Gold Coast, tender documents show.
The Australian Securities and Investments Commission will monitor print, radio and television advertising covering almost every product available to retail consumers for which it is responsible. An ASIC spokesman said advertising had a ''significant role'' in determining consumer choices and the watchdog had a ''strong focus on ensuring advertising is not misleading and encouraging good practice in advertising''.
''The current exercise is to enhance the coverage of regional media again, including electronic and print publications,'' he said.
ASIC is seeking a media monitoring outfit able to provide investigators with access to a searchable, regularly updated database of print, radio and TV ads from around the country, the tender documents show.
It wants to monitor ads for credit, including home loans, bank accounts and term deposits, superannuation, insurance, investment products including managed investment schemes and margin loans, and share-based products including derivatives and contracts for difference.
In addition to mining areas, ASIC is also increasing surveillance of the Gold Coast, where the federal and Queensland police are running a joint investigation into a series of share scams run out of call centres.
The advertising blitz was foreshadowed in February by ASIC commissioner Peter Kell, a consumer protection veteran who joined ASIC in October last year after a stint as deputy chairman of the Australian Competition and Consumer Commission.
''Irrespective of whether it's a region that has a larger proportion of retirees, a mining town, or a remote indigenous community, we should see financial products and advice marketed in a responsible and accurate fashion,'' Mr Kell told an Association of Superannuation Funds of Australia lunch.
''We know from past experience that sometimes these communities are targeted by unscrupulous promoters.''
He warned financial services promoters that ASIC had recently been granted new powers to issue public warnings and, through the courts, to seek civil penalties of up to $1.1 million for each advertisement that is adjudged misleading.
Frequently Asked Questions about this Article…
What is ASIC doing to target rural financial advertising in Australia?
The Australian Securities and Investments Commission (ASIC) is stepping up scrutiny of financial-service advertisements in regional Australia, including mining boom towns and other vulnerable communities, to identify and remove unscrupulous operators.
Which regional areas are being targeted by ASIC’s advertising surveillance?
ASIC’s tender documents name West Australian and Queensland mining areas such as Kalgoorlie and Mount Isa, and it is also increasing surveillance of the Gold Coast, a known fraud hotspot where share-scam investigations have been run from call centres.
What types of media will ASIC monitor for misleading financial ads?
ASIC will monitor print, radio and television advertising across regional and metropolitan media, and is seeking a media monitoring service to provide a searchable, regularly updated database of ads from around the country.
Which financial products will ASIC focus on when monitoring advertisements?
ASIC plans to monitor ads for a wide range of retail products under its remit, including credit products (home loans, bank accounts, term deposits), superannuation, insurance, investment products (managed investment schemes, margin loans) and share-based products such as derivatives and contracts for difference (CFDs).
Why is ASIC concentrating on regional communities, mining towns and the Gold Coast?
ASIC says regions with retirees, mining towns or remote Indigenous communities can be targeted by unscrupulous promoters, and the Gold Coast has been identified as a fraud hot spot tied to call-centre share scams—so the regulator wants advertising marketed responsibly and accurately in these areas.
Who is leading this push at ASIC and what has he said about the advertising blitz?
ASIC commissioner Peter Kell, a consumer-protection veteran who joined ASIC after serving as deputy chairman of the Australian Competition and Consumer Commission, foreshadowed the advertising blitz and emphasised that financial products and advice should be marketed responsibly and accurately in all regions.
What enforcement powers does ASIC have if an advertisement is found to be misleading?
ASIC has recently been granted powers to issue public warnings and, via the courts, seek civil penalties of up to $1.1 million for each advertisement adjudged to be misleading.
How will ASIC’s new media monitoring capability help everyday investors?
By building a searchable, regularly updated database of print, radio and TV ads and enhancing regional coverage, ASIC aims to detect misleading or deceptive financial advertising more quickly—helping protect everyday investors by encouraging more accurate marketing and exposing unscrupulous promoters.
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