All advertising must comply with the National Consumer Credit Protection Act 2009 (NCCP) and the National Credit Code (NCC) (Schedule 1 of the NCCP Act).
ASIC expects all advertising to be clear, accurate and not misleading.
Common advertising errors
Below are common breaches identified by ASIC.
Failing to disclose the Australian Credit Licence (ACL)
If an advertisement fails to cite the ACL number of the licensee, this breaches section 52 of the NCCP Act.
Even if the advertisement appears to be published by a Credit Representative, it promotes credit services provided under Connective’s licence.
The correct disclosure format is:
Australian Credit Licence 389328
Displaying an interest rate without a comparison rate warning
If an advertisement shows a percentage rate but fails to provide a comparison rate warning, this breaches section 163 of the NCCP Act.
Comparison rate less prominent than interest rate
If the comparison rate appears in a smaller or less prominent font than the advertised interest rate, this breaches section 164(2) of the NCCP Act.
Important
Disclosure statements and warnings must be as large and prominent as the main advertising content.
Use of the words “Free” or “Independent”
Exercise caution when using:
“Free”
“Independent”
These terms can be misleading if not strictly accurate and defensible.
Advertising lenders you are not accredited with
You must only advertise lenders for which you hold current accreditation.
Linking to uncontrolled external websites
Avoid linking to third-party websites where you cannot control:
Statements
Claims
Interest rates
Representations
You remain responsible for misleading content.
Testimonials and recommendations
Only use testimonials or written recommendations that are:
Genuine
Verifiable
Not misleading
“Terms and Conditions Apply”
If using this phrase:
Clearly disclose all relevant terms and conditions.
Avoid vague or hidden disclaimers.
Misleading imagery
Ensure images are appropriate for the target audience.
Example:
Avoid using mansion imagery when marketing to first home buyers.
Imagery must not create unrealistic or misleading expectations.
Why compliance matters
ASIC Regulatory Guide RG234 provides guidance on advertising financial products and services.
It aims to prevent misleading or deceptive conduct that could influence consumer decision-making.
Non-compliance can result in:
External dispute resolution complaints
Professional Indemnity insurance claims
ASIC penalties or enforceable undertakings
What you must do
To maintain ongoing compliance:
Refer all advertising to Connective Compliance Managers before going to market.
Ensure licensing statements are clear and accurate.
Suggested wording:
<Company/Business Name> (Credit Representative xxxxxx) is authorised under Australian Credit Licence 389328.
Download and review ASIC RG234.
Seek independent legal advice if required.
Submit advertising for approval
Send all advertising material to:
Your material must be reviewed and approved before publication.
Best practice tips
Keep disclosures clear and prominent.
Avoid exaggerated claims.
Retain evidence supporting any advertised rate or offer.
Regularly review website and social media content.
Need help?
If you need assistance reviewing advertising content, contact your Partnership Manager or email [email protected].