Marketing, compliance and truth in lending

In a previous post (Do you really want to know what your members think?) I discussed marketing as a 2 way communication channel for credit unions and mutuals. What’s that got to do with legal compliance?

Your relationship with all your customers is covered by your Code of Conduct.

When you market financial services (such as deposits, insurance, advice) then you need to comply with ASIC’s FSR policies and Part 7.9 of the Corporations Act and the ASIC Act (the financial services equivalent of the Trade Practices Act).

If you market securities and shares you must comply with Chapter 6 Corporations Act.

If you market loans to consumers you need to comply with the Consumer Credit Code.

Online account transactions must comply with the EFT Code.

Financial services marketing compliance needs to address laws specific to products and services offered as well as laws which relate to the lifecycle of a financial service or product: advertising, applications, creating a contract (and its form) and how the product is maintained (including payments, statements and notices, debt collection) through to eventual account termination. In addition, credit unions need to consider their corporate governance and prudential obligations as well as their general community public relations.

Marketing is not just advertising a specific product: whether it is a deposit, a loan, a credit card, financial advice or insurance.

It involves your organisation’s “brand”, your relationship with your members and how you develop a financial product.

The experts all say that advertising on its own without the necessary preparation is a waste of time and is even counter-productive.

Here’s an example (from the USA) of a what a dissatisfied credit union customer can say: Dear credit union – why don’t you love me anymore?

BONUS: CU on the blogs from USA National Association of Federal Credit Unions

Print Friendly, PDF & Email

Your Compliance Support Plan

We understand you need a cost-effective way to keep up to date with regulatory changes. Talk to us about our fixed price plans.