FCA clamps down on marketing that flouts regulations

Financial services companies are flouting marketing and promotion rules on a regular basis, according to new figures. 

More than 200 promotions have had to be changed or withdrawn in the past year on instruction from the Financial Conduct Authority (FCA).  The figures were released in response to a freedom of information request by financial services regulatory consultancy Bovill.

The news comes as calls intensify for controls on the advertising of payday lending during children’s programmes.

Transgressions revealed in the FCA response included using too much investment jargon, putting warning statements in print sizes that were too small and hard to read, not giving sufficient warns about investment risks and not demonstrating how a feature of a product or service is “guaranteed”.

While these cases principally refer to the promotion of investments, the company pointed out that they were expecting the FCA “to be getting ever more pro-active in policing the financial promotion rules. If it thinks firms have overstepped the rules, it will be quick to intervene”.  They added that information sent out via social media was particularly at risk of falling foul of the regulations.

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