25.02.2022

Advertising a financial product or service? Read on.

A new Financial Advertising Code (Code) will replace the existing Code for Financial Advertising effective 1 March 2022 for new, and 1 June 2022 for all existing, financial advertising captured.

The Code has been developed by the New Zealand Advertising Standards Authority (ASA) to better fit the current legislative landscape and provide a clearer and more detailed set of guidelines for the industry and consumers alike. 

Modernised approach

The Code applies to financial advertising. This captures messages communicated in any medium, controlled directly or indirectly by advertisers with the intent to influence the choice, opinion, or behaviour of those it is addressed to and is for the purpose of promoting a financial product or service.  Online financial advertising, including through influencers, is covered by the Code.

Financial product or service is a new definition in the Code.  Consistent with the overall approach of the Code, the intention is for consumers to easily understand if an advertisement is captured.  This is achieved by including a non-exclusive list of products and services covered.  The list ranges from insurance and credit cards, to buy now, pay later products and cryptocurrencies. 

Advertisers and their agents, such as influencers, are also responsible for ensuring that user generated content complies with the Code when they are part of the advertisement.

Strengthened consumer protections

Financial advertising continues to be held to a high standard of social responsibility.  As well as being easily understandable, truthful, and not misleading or deceptive, the Code sets out that the content of financial advertising must not take advantage of consumers who may be financially vulnerable or have limited knowledge about financial products and services. 

The Code will need to be considered in conjunction with the Advertising Standards Code and other legal requirements relating to financial products, such as the Financial Markets Conduct Act 2013 and the Credit Contracts and Consumer Finance Act 2003. 

Fundamentally, the Code is a user-friendly guide for your average consumer to the ASA financial advertising rules.  The rules are easy to understand, and this, along with the straightforward complaint process the ASA provides, makes it a convenient avenue for issues with financial advertising to be raised.

If you have any questions about the Financial Advertising Code, please get in touch with our Business Advice Team or your usual contact at Hesketh Henry.

Disclaimer:  The information contained in this article is current at the date of publishing and is of a general nature.  It should be used as a guide only and not as a substitute for obtaining legal advice.  Specific legal advice should be sought where required.

Do you need expert legal advice?
Contact the expert team at Hesketh Henry.
Kerry
Media contact - Kerry Browne
Please contact Kerry with any media enquiries and with any questions related to marketing or sponsorships on +64 9 375 8747 or via email.

Related Articles / Insights & Opinion

Complexities of contract termination – High Court calls halt on the Contractor’s process in Rau Paenga v CPB
The High Court in Rau Paenga Ltd v CPB Contractors Pty Ltd [2023] NZHC 2947 granted an interim injunction preventing the Contractor from suspending and terminating its contract for the construction of...
30.05.2024 Posted in Construction & Disputes
iStock  Employment Concept
Court of Appeal overturns Employment Court decision stripping family carers of their employment status
Two parents of disabled adult children have lost their status as employees of the Ministry of Health (MOH). The Employment Court had previously found that they were “homeworkers” and therefore emp...
29.05.2024 Posted in Employment
vadim kaipov  kIqhmxc unsplash med
Is working from home still working?
There are conflicting views on whether working from home is effective. Research conducted by Massey University at the end of 2023 found that around 40% of workers were doing hybrid work. This was an i...
23.05.2024 Posted in Employment
The Legal500 Construction Comparative Guide
The Construction team at Hesketh Henry is the exclusive New Zealand contributor to The Legal 500: Country Comparative Guide for Construction.  Partners Glen Holm-Hansen and Helen Macfarlane along wit...
21.05.2024 Posted in Construction
Government trumps Member’s Bill with the Contracts of Insurance Bill 2024
It now seems there is at least the possibility 2024 will be the year New Zealand finally sees the reform of insurance law with the Government’s own bill, the Contracts of Insurance Bill, now before ...
16.05.2024 Posted in Insurance
Computer Hand Wide
Privacy Commissioner releases draft biometrics privacy code
Biometrics is a trending issue and with the development of technology there are consistently more ways biometric data can be used, from replacing a password to identifying repeat shoplifters in a shop...
03.05.2024 Posted in Business Advice
Building Permit
Build-to-Rent (BTR) Basics
If the term Build-to-Rent is new to you, you are probably not alone.  Unlike countries such as the USA, UK and Australia where BTR is well established, the BTR sector is still emerging in New Zealand...
26.04.2024 Posted in Property
SEND AN ENQUIRY
Send us an enquiry

For expert legal advice, please complete the form below or call us on (09) 375 8700.