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Brokers need to be diligent with their website collateral, Gadens' Jon Denovan has warned.
Speaking to The Adviser, Mr Denovan said there are a few things that brokers should not include on their website lest they risk attracting the unwelcome attention of the Australian Securities and Investments Commission (ASIC).
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“You normally can’t get into trouble by posting articles and writing blogs. After all, the internet is a discussion forum. It’s when you’re advertising products that you’ve got to be careful not to make false claims,” Mr Denovan said.
“‘Cheapest’, ‘best’ and ‘instant decisions’ – all those sorts of words are red rags to the bull. And of course if you have an interest rate, you must have a comparison rate,” he said.
In addition, Mr Denovan said brokers need to take care with their ‘headline’ claims – the hook they use to capture people’s attention online and draw them in.
Most people think that if they specify ‘terms and conditions apply’, and have a small footnote on their website, then they will avoid any recriminations.
The disclaimer, however, may not be enough.
“Consumers tend to only read the headline claim, the bold statement,” Mr Denovan said.
“If the headline claim has to be qualified, you have to be careful. If you say ‘interest rates from four per cent’, but in order to get an interest rate of four per cent you have to be living on Mars, then that’s misleading – even if you say that ‘terms and conditions apply’.”
