Why the ASA’s Financial Advertising Code Matters More Than Ever

Financial advertising carries more weight — and more consequence — than most categories. It influences decisions that shape people’s security, their resilience, and their long-term wellbeing. In a market crowded with new products, new platforms, and increasingly complex choices, responsible advertisers need clear rules that protect consumers while allowing innovation to flourish.

New Zealand’s ASA Financial Advertising Code is the anchor for that balance. It sets out the standards advertisers must meet if financial communications are to remain fair, trustworthy, and socially responsible. Understanding these principles — and applying them rigorously — is critical to maintaining confidence in the marketplace.

The Principles: Clarity, Truthfulness, and Responsibility

At its heart, the Code rests on three core principles:

1. Financial advertising must be clear and understandable

Consumers must be able to grasp what a product is, how it works, and what obligations or risks are involved. This applies across all formats — from a 6-second digital video to a long-form brochure. Complex products do not justify complex explanations; the burden sits with advertisers to translate features into plain language.

2. Claims must be accurate, substantiated, and not misleading

Any reference to returns, fees, savings, or comparative benefits must hold up under scrutiny. Optimistic projections, selective data, or omission of material conditions undermine consumer trust. The Code requires that information is not just technically correct, but true to the overall impression the ad creates.

3. Advertisers must exercise a heightened duty of care

Financial products can carry long-term consequences. The Code demands that advertisers avoid exploiting consumer vulnerability — whether through pressure tactics, unrealistic portrayals of outcomes, or presenting financial decisions as trivial or consequence-free. This duty is especially important for high-risk products such as credit, insurance, investments, and buy-now-pay-later services.

Key Rules That Shape Responsible Financial Advertising

Beneath these principles sit specific rules that guide practice. Among the most important:

• Material information must be prominent, not buried. Terms that affect cost, eligibility, or risk must be easily seen and understood.

• Risks must be disclosed where relevant, particularly for investment or variable-return products.

• Comparisons must be fair, using like-for-like data that does not misrepresent competitors.

• Qualification statements must genuinely clarify, not contradict or undermine the headline claim.

• Imagery, tone, and testimonials must not create unrealistic expectations about financial success or effortless wealth.

• Vulnerable consumers must not be targeted or exploited, especially in credit and high-risk lending environments.

• Influencers and third-party endorsers must follow the same rules, including clear disclosure when content is paid.

These are not bureaucratic hurdles. They are essential safeguards that ensure financial advertising informs rather than misleads.

Why the Code Matters for Responsible Advertisers

1. It protects consumer confidence

Financial decisions require trust. When advertising is reliable and transparent, consumers feel more confident engaging with the market — and that supports healthy competition and genuine innovation.

2. It lifts the professional standard for the entire sector

Adherence to the Code isn’t just about compliance. It’s about setting a bar that responsible advertisers want to exceed. High-quality financial advertising differentiates reputable brands from opportunistic or marginal players.

3. It strengthens the industry’s licence to self-regulate

New Zealand’s advertising system relies on effective self-regulation. When advertisers take the Code seriously, they demonstrate that self-regulation works — reducing the likelihood of heavy-handed government intervention and ensuring the industry retains control over its own standards.

4. It reduces harm and prevents long-term consumer detriment

Clear, honest financial advertising helps consumers avoid debt traps, unrealistic expectations, and rushed decisions. The Code makes sure people are not misled during moments of financial stress, urgency, or unfamiliarity.

Where ANZA Stands

ANZA strongly supports robust application of the ASA’s Financial Advertising Code. It remains one of the most important tools in ensuring the financial marketplace operates fairly, transparently, and in the best interests of consumers.

In an era of increasing complexity — and increasing risk from misinformation and scams — the Code gives responsible advertisers a framework that protects both their customers and the integrity of the wider advertising ecosystem.