The Australian Securities and Investments Commission wants banks and other financial services providers to do a better job of explaining the risks and costs, along with the benefits, of the products and services they sell.ASIC yesterday issued a consultation paper on good practice in advertising financial products. Its aim is "to promote confident and informed investors and financial consumers", and its view is that investors and financial consumers are heavily influenced by ads when making financial decisions.The paper says advertisements that do not fairly represent the financial product or its key features, or the nature and scope of the advice service, can be misleading and create unrealistic expectations that can lead to poor investment decisions.In a speech at an Abacus forum yesterday, ASIC's chairman, Greg Medcraft, said: "The draft guidance sends a clear message to those promoting financial products that they need to do more about explaining the risks as well as the benefits of products in their ads."  Products covered by the guidance include investment products, superannuation accounts, risk products, non-cash payment facilities and credit facilities, and savings accountsGuidance covers the nature of the product, returns, benefits and risks, fees and costs, warnings and disclaimers, comparisons, past performance and forecasts, and even the images used in ads.The key messages are that benefits should not be given undue prominence compared with risks, and warnings, and disclaimers should not be inconsistent with other content. They should have a proportionate level of prominence.Among the examples in the paper, ASIC says an ad should not promote an online savings account as allowing customers to earn high rates of interest "with no fees" when, in practice, the account must be linked to another account that does attract fees.An ad for a savings account should not claim there is "no annual fee" without clearly stating that there is a monthly fee instead.While an introductory offer for a credit card might offer a low interest rate for six months on a balance transfer and an interest-free period on purchases, if these benefits are not available concurrently this should be made clear.Financial service providers must state clearly in their advertising whether an offer, such as a fee waiver on a bank account, is available to all customers or only to new customers. Some deposit products may allow consumers a certain number of free transactions per month, after which excess transaction fees apply. Advertising for such products should not describe them as fee-free.A bank should not advertise an account as an "everyday savings account" if there are restrictive terms and conditions applying to transactions.The consultation paper offers specific guidance on internet and new media advertising. Internet advertisements should be self-contained. Consumers should not have to click through from an online ad to additional information on another website to ensure they are not being misled.Promoters should consider the appropriateness of using new media channels for ads if content limitations mean there is insufficient space to provide balanced information.