The Bank of Spain Circular 4/2020, of June 26, on advertising of banking products and services entered into force on October 15.
Among the main novelties introduced by Circular 4/2020, it is highlighted the purpose of adapting to the evolution of the advertising sector, as a consequence of the impact of digital technology, and the need to guarantee more effective supervision of compliance with regulations.
It also establishes a series of rules aimed at strengthening control over advertising:
- control prior to the dissemination of advertising by entities
- control after the dissemination of advertising by the Bank of Spain.
- specific regime applicable to advertising broadcast through audiovisual or radio media, digital media, or social networks.
The possibility of adhering to the advertising self-regulation systems is maintained as a method of accreditation of the compliance of their advertisings.
Also, the characteristics and minimum content of the internal registry are specified
The specific regulation on the procedure by the Bank of Spain includes supervisory functions of advertising activity and, especially:
- verifications carried out to ensure that the content and format of the advertising pieces are adequate.
- means to withdraw the advertising of products or services no longer available
- obtention of the positive preliminary report from advertising self-regulation systems
- obligation to notify the Bank of Spain of the start of the advertising activity of those entities that advertise for the first time about banking products and services addressed to clients or potential clients
Despite the regulation entered into force on October 15th, the internal “Advertising registry” regulations will enter into force six months after the “Technical specifications” required are published.
The regulation aims to adapt the advertising of banking products to technological advances and strengthen the advertising control by establishing procedures to protect customer's interests.