The FSA has spelled out plans for simplifying rules for the financial promotions for the provision of qualifying credit.
The FSA issued guidance on what constitutes financial promotion in brochures, advertisements, websites and telesales calls in May. CP146 says a number of exceptions will be made that will not be subject to new rules, including general advertising and product literature.
Sections of the Financial Services and Markets Act say a person must not publish a financial promotion unless they are either authorised or an authorised person has approved the promotion's content, but three main changes to the legislation have been made.
Firstly, many mortgage intermediaries may be authorised in their own right and will no longer have to get their promotions approved by an authorised firm. Secondly, mortgage intermediaries may alternatively choose to become appointed representatives, leaving an authorised firm responsible for any promotions. Finally, the activities of advising on or arranging the provision of qualifying credit mean that the FSA will be responsible for regulating many more intermediary promotions.
The FSA had previously held that it was likely that the great majority of intermediary advertising would remain covered by the Consumer Credit Act. Intermediaries were exempt from this because their own advertising does not typically identify lenders or other credit providers.
However, the FSA says: “The two new FPO activities are not dependent on the lender being identified. Instead, it is sufficient that the promotion indicates that the advertiser provides a service of arranging or advising in relation to the provision of qualifying credit.”