The ASIC Act also prohibits an individual or institutions from engaging in conduct, in relation to financial products or services, that is misleading or deceptive. In practical terms, think of this as any behaviour that leads, or is likely to lead, a customer into error. For example, imagine if an insurance agent provided incorrect information about the circumstances under which insurance is payable. This behaviour may result in the customer buying a policy that does not suit the customer's needs.

In deciding whether conduct may be misleading or deceptive, keep in mind the following important principles. Click on each principle for more information.