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42% Of mortgage and investment ads fail test

Over 40 per cent of all mortgage and investment advertising does not comply fully with FSA regulations, according to Financial Services Consumer Panel research.

The survey reveals 42 per cent of investment product ads do not comply with all the FSA’s regulations, almost unchanged from the 43 per cent the panel measured in the same survey two years ago.

It shows 43 per cent of mortgage ads are non-compliant compared with 47 per cent two years ago.

But the panel highlights a huge improvement in general insurance advertising with only 2 per cent not compliant compared with 79 per cent two years ago.

The panel researched the home-reversion market and found a number of ads to be “deemed unclear, unfair and misleading in an area with significant potential for consumer detriment”.

It says the FSA should publish details of promotions that fail to reach its standards as soon as they are identified, as happens with financial services broadcast adverts.

The FSA’s current policy is to not publicise the firm but rather to ask them to make the necessary amendments behind closed doors.

FSCP acting chairman Adam Phillips says: “The FSA needs to do more publicly in this area and be true to its principle of being an open and transparent regulator. Firms will then be able to see clearly where the standards are set.”

SURVEY FINDINGS

Overall 33% did not comply compared with 57% two years ago

43% of mortgage promotions (47%)

42% of investment promotions (43%)

2% of general insurance promotions (79%)

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