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Restructuring Advertising
The Reform of the Principles and Rules for Advertising Financial Products and Services by the Bank of Portugal (Notice no. 5/2024)
Introduction:
Due to the importance that Advertising assumes in building the reputation and opinion of the public regarding products and services offered for sale, the Bank of Portugal has been regulating the advertising of financial products and services since 2008.
Faced with the digitalization of the market (and advertising), the Bank of Portugal felt the need to revisit (and restructure) its internal regulations, also reflecting its experience as a supervisory body, in order to “allow bank customers to properly assess the commitments they make, with advantages for themselves, the institutions and the efficiency of the financial system.”
Scope:
Advertising activities (defined as a “communication strategy” aimed at “marketing financial products and services”) carried out by credit institutions, financial companies, payment institutions and electronic money institutions, by credit intermediaries and other entities qualified to carry out the activity of credit intermediation.
Key Features:
- Densification of the General Applicable Principles (Chapter I)
- Creation of 3 Types of Regulated Advertising (each their own regimes):
- Advertising of financial products and services (Chapter II)
- Activity advertising (Chapter III), and
- Institutional advertising (residual type) (Chapter IV)
- Imposition of Obligations to Report and Archive Advertising Media (Chapter V) (and creation of a duty to file the approval by institutions of advertising for credit products).
- Imposition of Minimum Character Requirements in the different advertising media (in Annex)
Entry into force:
The rules contained in the Notice will enter into force on January 1, 2025.
