AGB Code of Conduct for Deposit Advertisements (August 2012)

Summary

This is a non-statutory code issued by the Association of Guernsey Banks (AGB) in August 2012, with the support of the GFSC, setting out detailed rules for how deposit accounts may be advertised in the Bailiwick of Guernsey. It applies both to advertisements by GFSC-licensed banks and to advertising in Guernsey by banks not licensed there.

• Fair and clear advertising: All advertising and promotional material must be clear, fair, reasonable and not misleading, and must not damage the reputation of the Bailiwick.
• Rate disclosure: Any advertisement quoting a rate of interest must always quote the Annual Equivalent Rate (AER) rounded to two decimal places, state payment frequency, whether the rate is fixed or variable, minimum deposit amounts, tiered balance thresholds, and any period during which no or a different interest rate applies.
• Risk and terms disclosure: Advertisements must disclose all key risks specific to the product and state that terms and conditions apply where relevant.
• Deposit compensation scheme statement: Guernsey-licensed banks must state they participate in the Guernsey Banking Deposit Compensation Scheme (GBDCS); banks licensed elsewhere advertising in Guernsey must state they are NOT GBDCS participants and disclose whether an equivalent scheme applies.
• Licensing statement: Guernsey-licensed banks must state their deposit-taking business is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994 (short form permitted for radio/TV); banks licensed elsewhere must state under which law and jurisdiction they are licensed.
• Prior permission for unlicensed advertisers: A bank not licensed in Guernsey wishing to advertise in the Bailiwick must obtain prior written permission from the GFSC under the Banking Supervision (Bailiwick of Guernsey) Regulations 1994.
• Bonus and escalator rate disclosure: Bonus rate duration and terms must be stated clearly in the main body of the advertisement, and escalator/stepped accounts must disclose all applicable rates, timescales and access conditions.
• Rate currency qualification: Media and direct mail advertisements quoting a rate must include a qualification such as "rates correct at date of going to press" with the relevant date, with limited exemptions for internet, radio and television.
• Registered details and agency clarity: Advertisements must state the institution's registered/business name, registration number, address and regulator, and clearly identify which party is agent and which is principal where an agent advertises on a principal's behalf.

The Code covers all media types (print, broadcast, online, direct response) and includes an appendix mapping specific requirements to each media type, noting some relaxations for radio, television and click-through web banners where information appears on a landing page.

Key obligations

• Ensure all deposit advertising and promotional material is clear, fair, reasonable and not misleading
• Quote the AER (rounded to two decimal places) whenever any interest rate or return is communicated
• Disclose payment frequency, fixed/variable status, minimum deposit, tiered balances and notice periods when quoting an interest rate
• Disclose all key risks specific to the advertised product or service
• State GBDCS participation status (or non-participation and equivalent scheme details for non-Guernsey-licensed banks)
• State the licensing law and regulator under which the deposit-taking business operates
• Obtain prior written permission from the GFSC before advertising in Guernsey if not licensed there
• Clearly state the duration and terms of any bonus interest rate in the main part of the advertisement
• Include a rate-currency qualification statement (e.g. 'rates correct at date of going to press') in media and direct mail advertisements quoting rates
• Disclose all applicable rates, timescales and conditions for escalator/stepped rate accounts
• State registered/business name, registration number, address and regulator in advertisements
• Clearly identify agent versus principal in advertisements placed by an agent

Applies to

banks licensed in the Bailiwick of Guernsey, banks not licensed in Guernsey advertising in the Bailiwick, AGB member banks

Deadlines

• 1 August 2012: Date this revised version of the Code took effect, replacing the previous version