There was an article in The Australian Broker Online and it stated that RAMS is the latest casualty on ASIC’s hard-line stance on misleading advertising. The Westpac-owned brand was forced to change its high interest Saver account campaign after ASIC raised concerns over misleading information on the advertised 0.8% bonus rate. According to ASIC, the campaign failed to adequately explain that the bonus was only available if no withdrawals were made for an entire month. The ad appeared on television, online & outdoor advertising. In response, RAMS has amended the wording and highlighted the terms and conditions. RAMS is the latest in a line of institutions scolded by ASIC for “misleading” or inaccurate advertising statements. Last month, RESI was forced to change its home loan advertising campaign after it was found to inadequately disclose the comparison rates. The spate of reprimands followed the release of ASIC’s Regulatory Guide 234: Advertising financial products and advice services: Good practice guidance. ASIC commissioner Peter Kell was adamant swift action would be taken against non-compliance. “ASIC’s guidelines will help industry participants understand their obligations but we are also sending a message that we will take action in response to misleading ads for financial products and services,” he said.   

John Whitten can be contacted on 0749722081 or 0410433919. You can also email him at jwhitten@ihl.net.au or look him up on the net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).