79 Boulcott Street,
P O Box 10 675,
(04) 472 7852 or
0800 ADHELP (0800 234357)
(04) 471 1785
Code for Financial Advertising
1 August 1998
The Code should be read in conjunction with legislation
and in particular the Securities Act 1978, the Securities Regulations
1983, The Credit Contracts and Consumer Finance Act 2003 and the Fair
Trading Act 1986.
An advertisement which adheres to the letter of a particular
law nevertheless may be in breach of the Code if it does not comply
with and respect the spirit and intention of the Code.
"Appropriate industry standards" are
industry standards, guidelines, or codes set by a recognised industry
group and endorsed by the ASA.
"Financial advertisements" are advertisements
for the borrowing, lending, saving or investment of money, for guarantees,
financial instruments and the purchase or sale of securities.
Financial advertisements should comply with the laws of New Zealand
and appropriate industry standards.
Financial advertisements should observe a high standard of
social responsibility particularly as consumers often rely on
such services for their financial security.
Financial advertisements should strictly observe the basic
tenets of truth and clarity and should not by implication, omission,
ambiguity, small print, exaggerated claim or hyperbole mislead,
deceive or confuse, or be likely to mislead, deceive or confuse
consumers, abuse their trust, exploit their lack of knowledge
or, without justifiable reason, play on fear.
Attention is drawn to the strict provisions of sections 33,
38 and 38 A of the Securities Act 1978 and to regulations 8
to 23 of the Securities Regulations 1983 which are available
on request. Regulation 17(6) has particular relevance to the
position of agencies who publish financial advertisements.
Attention is also drawn to section 30 of the Reserve Bank of
New Zealand Act 1989 which requires the prior consent of the Reserve
Bank for the reproduction of banknotes in an advertisement where
they are likely to be confused or mistaken for the real thing.