Australian financial services companies will have to show they are licensed by ASIC and complete a verification process before they can place ads for financial services on Google.

Google has updated its financial products and services policy in response to calls from regulators for it to do more to reduce the amount of scam advertising on its search engine.

The changes, which take effect on August 30, apply to Australia, Singapore and Taiwan. Similar rules were introduced in the UK last year and other countries will follow.

The policy says: “In order to advertise financial products, advertisers must obtain third party verification through our external compliance partner, G2 Financial Services Verification, and then apply for financial services verification with Google.

“As part of G2’s third party verification process, G2 will ask advertisers about the type of financial services they provide, whether they are licensed to provide those services and their registration number, among other things.

“Advertisers must demonstrate that the relevant national financial services regulator directly authorises them to undertake financial services activities or that they are exempt from that requirement.”

David Jacobson, the principal of Bright Corporate Law, said that in addition to investment products, the policy covers personal loans, credit repair services, debt services and cryptocurrencies.

The Australian Competition and Consumer Commission highlighted the role digital platforms needed to play in preventing financial scams in its latest report on scam activity, which reported a significant increase in losses last year due to investment and other scams.

Google said in a statement that since it launched the policy in the UK, it has blocked or removed 59 million ads for violating its financial services policy.