In an era where digital advertising is increasingly scrutinised for transparency and accountability, Meta (formerly Facebook) is taking significant steps to ensure the safety and reliability of financial services advertisements on its platforms. Starting February 2025, Meta will enforce new verification and on-ad disclaimer requirements for ads promoting financial products or services to users in Australia. These changes are part of the Australia Online Scams Code and are designed to combat fraud, impersonation, and misinformation in the financial services sector. This article explores how these changes will impact financial services advertisers, the specific authorisation requirements, and the broader implications for the industry.
The Need for Enhanced Verification in Financial Services Advertising
The financial services industry is a prime target for fraudulent activities, including scams, phishing, and impersonation. Meta’s new requirements aim to address these issues by ensuring that only legitimate advertisers can promote financial products and services on its platforms. By implementing stricter verification processes, Meta seeks to protect consumers from misleading or harmful advertisements while complying with regulatory authorities.
What Constitutes a Financial Services Ad?
Financial services ads are identified based on their focus on promoting financial products and services. These include, but are not limited to:
- Insurance products
- Mortgages
- Loans (both long-term and short-term)
- Investment products and opportunities
- Credit card applications
However, not all ads related to financial services will require authorisation. For example, brand ads for banks and insurance companies, news articles about financial products, and educational content about financial literacy or loan management are generally exempt, provided they do not directly promote a specific financial product or service.
Regions Requiring Prior Authorisation
Advertisers targeting audiences in the following regions will need to obtain prior authorisation to run financial services ads:
- Australia
- Taiwan
- United Kingdom
Each region has its own set of requirements, which may differ significantly. This article focuses primarily on the requirements for Australia, as they are the most comprehensive and serve as a model for other regions.
Australia’s Authorisation Requirements: A Step-by-Step Guide
Meta’s new verification and disclaimer requirements for financial services ads in Australia are designed to ensure transparency and accountability. Advertisers must complete the following steps before their ads can be published:
- Verify the Ad’s Beneficiary and Payer
Before running eligible financial services ads, advertisers must verify information about the ad’s beneficiary and payer. The beneficiary is the individual or organization benefiting from the ad, while the payer is the individual or organisation paying for the ad. This verification process includes providing Australia Financial Services Licence (AFSL) information, unless the advertiser is exempt.
- Select Verified Information to Disclose
Eligible financial services ads must include a “Paid for By” disclaimer, which features the name of the individual or organisation paying for and/or benefiting from the ad. This disclaimer is clickable and leads to a separate info sheet containing verified information about the beneficiary and payer, as well as their licence number or exemption status. The disclaimer is created during the ad creation process based on the nominated beneficiary and payer information.
Note: This verification information will be publicly displayed on the ads while they are running and will remain accessible in Meta’s Ad Library for up to seven years.
How to Verify the Beneficiary or Payer of an Ad Targeting Australia
What to Know Before You Begin
Verification can be initiated through two primary platforms:
- Ads Manager: Advertisers will see a prompt to verify after selecting Australia as their location and declaring that their ad set is related to financial products and services during the Compliance Check.
- Meta Business Suite: Within the Authorisations and Verification tab in Business Settings, advertisers can start the verification process under “Verification for financial services ads delivered to Australia.”
To complete verification, users must have both business account and ad account admin permissions. If the ad account is not owned by a business account, the user can still verify as long as they have admin permissions on the ad account.
If verification has already been completed for a beneficiary or payer, advertisers may not need to verify again. The verification status of ad accounts can be checked within the Authorisations and Verifications section of Meta Business Suite.
Steps to Verify the Beneficiary or Payer
- From the Authorisations and Verifications Page:
- Select the asset you want to verify and click “Start Verification.”
- Read the requirements to run financial services ads in Australia and click “Get Started.”
- Provide your Australia Financial Services Licence Number or declare your exemption status.
- Select whether you are verifying yourself or an organisation.
- If Verifying an Individual:
- Upload a government-issued ID, such as a passport, driving licence, or national ID card.
- Note: You cannot upload an ID on behalf of another individual. They must complete this step themselves.
- If Verifying an Organisation:
- Enter your business information and select your business from the list of results.
- If your business is not listed, upload an acceptable business document.
- Confirm your connection to the business via email, text message, phone call, identity verification, or domain verification.
Once the information is submitted, Meta will review it and provide a status update within two working days.
How Verification Information is Reviewed
Meta’s review process ensures that the information provided is accurate and meets the platform’s requirements. Here’s what advertisers can expect:
Status for Individual Verification
- Verification in Progress: The information is under review.
- Verification Complete: The verified information can now be used in ad disclaimers.
- Verification Unsuccessful: The provided information did not meet the requirements. Advertisers must resubmit a valid ID.
Status for Business Verification
- In Review: The information is under review.
- Verification Successful: The verified information can now be used in ad disclaimers.
- Verification Unsuccessful or Needs More Information: The provided information was insufficient. Advertisers must resubmit accurate business details.
Creating a Disclaimer for Your Ad
Once verification is complete, advertisers can use the verified information to create a disclaimer for their ads. During the ad creation process, advertisers will see an option to select verified information about the beneficiary and payer. This information will be displayed in the “Paid for By” disclaimer.
Important Note: Disclaimers cannot be edited once the ad is live. If changes are needed, the ad must be taken down and recreated.
Consequences of Non-Compliance
Advertisers who provide false or misleading information during the verification process, attempt to verify a business they are not authorised to represent, or otherwise circumvent Meta’s verification system may face severe consequences. These include:
- Prevention of business verification
- Removal of verified status
- Additional account-level actions
Frequently Asked Questions (FAQs)
- Who is the “beneficiary” or “payer” of an ad?
- The beneficiary is the individual or organisation benefiting from the ad, while the payer is the individual or organisation paying for the ad. Meta encourages advertisers to consult legal representatives for specific designations.
- Do global ads need to comply with the Australia Online Scams Code?
- Yes, ads targeting a global audience must comply with the verification and disclosure requirements under the Australia Online Scams Code.
- What if my business is not located in Australia?
- Advertisers targeting users in Australia must adhere to the verification and disclaimer requirements, regardless of their location.
- What if my organisation does not have an Australian Financial Services Licence?
- Advertisers without an AFSL can self-declare as exempt, provided they meet the criteria outlined in the Australia Online Scams Code.
- What if my verification submission is rejected?
- Advertisers can reapply by following the prompts provided in the Authorisations and Verifications tab.
In summary, Meta’s new verification and disclaimer requirements for financial services ads represent a significant shift in how financial products and services are advertised on Facebook and Instagram. By prioritising transparency and consumer safety, Meta is setting a new standard for digital advertising in the finance industry. Advertisers must familiarise themselves with these requirements and ensure compliance to avoid disruptions to their campaigns. As the February 2025 deadline approaches, staying informed and proactive will be key to navigating these changes successfully.
By Manesh Ram, Digital Marketing Specialist. Please follow @maneshram & Meta
