View more on these topics

Non-compliant ads still blight industry

It was soon clear that many of the advertisements placed after M-Day were non-compliant. What is shocking is that many are still non- compliant 12 months on.

Over the past year many surveys have been carried out into this issue. I’m not sure why this still goes on as the financial promotions rules are pretty clear and prescriptive. And there was a grace period provided to allow copy to be adjusted. The FSA gave firms until the end of this January to make the necessary adjustments. This was then extended until the end of October for annually adjusted items such as listings in directories.

But there still seems to be a problem. Open any consumer magazine or newspaper and you will find advertisements that are either totally or partially non-compliant.

Estimates as to the extent of the problem differ but the consensus is that up to one-third of all adverts fail the compliance test.

As always, there have been differing approaches to the adoption of the rules. Some have clearly ignored the financial promotions guidance and have no intention of following it until compelled. Others are simply not applying the rules correctly.

There’s no doubt the situation has improved since last year but not as fast as it should have done.

And the finger can’t be pointed in just one direction. Lenders, intermediaries, directly authorised firms and appointed representatives have all advertised non-compliantly.

Be sure the FSA monitors advertisements and, following the extended period of grace, its activity will increase. It has been clear that it will assess the breach and decide what the damage to the customer could be.

As a guiding principle, that all advertising should be clear, fair and not misleading is a good starting point. The FSA has powers to deal with non-compliant advertising that range from a request not to run the advert again to a referral to the enforcement team.

There are many ways adverts can be reported to the FSA, whistle blowing being just one.

The FSA offers help to advertisers on the phone and online. Guidance is just a phone call away. This makes the level of non-compliant advertising even more of a concern.

The issue must be given much more publicity. Non- compliant advertising must disappear – and quick. simon biddle is head of marketing and communications at Infinity Mortgages

Recommended

Paragon says buy-to-let market is booming

The latest figures from Paragon reveal the buy-to-let market has gone from strength to strength.The lenders preliminary results for the year ended September 30 2005 show buy-to-let loans are up 23.8% to 5,031.6m, from 4,064.1m in 2004. Jonathan Perry, chairman of Paragon, says: “Paragon’s strategy has enabled the buy-to-let business to move forward on a […]

Economic Lifestyle challenges providers to improve product terms & conditions

Economic Lifestyle is challenging other equity release providers to improve the terms and conditions of their products as it launches its cash release plan, a fully portable and flexible reversion scheme available for customers aged 60 and over.The retirement housing and finance specialist believes poor sales of reversion plans in comparison with lifetime mortgage schemes […]

Homebuyer Show dates announced

The Homebuyer Show returns to the ExCeL Centre in London’s Docklands from March 17 to 19 2006.The housing market continues to make headlines and with SIPPs, HIPs, and overseas destinations on the horizon, the organisers of the show say there has never been a better time to make your move. Now in its 11th year, […]

Beacon appoints Morris as national sales manager

Beacon Homeloans has appointed Beverley Morris as national sales manager. Brian Pitt, director at Beacon, says: “We are delighted to secure the services of one of the most experienced sales people in the mortgage market and I am looking forward to working with Bev to further develop the Beacon brand and consolidate the relationships with […]

Show me the money – earnings are central to performance in Europe

Equity markets globally currently remain vulnerable to sharp shifts in sentiment caused by either unexpected or unwelcome outcomes in key upcoming political events (the US and German elections, Brexit and the Italian referendum). These top-down influences, combined with the current low global growth environment, will likely lead to broadly directionless markets, and prolong the current low beta return environment. We do, though, […]

Newsletter

News and expert analysis straight to your inbox

Sign up