The use of past performance in financial ads is unlikely to face an
all-out ban by the FSA, according to the head of its task force examining
Consumer director Christine Farnish told BBC Radio 4's Inside Money last week
that banning use of past performance would be seen “by most people as a
Her comments go some way to calming industry fears that the regulator will
crack down on its use. The taskforce is due to make its report next month.
Farnish said: “I suspect it would be seen by most people as a very extreme
response because, after all, past performance information is a fact. It may
well be that a better way forward would be to allow past performance
information but try and make sure that it is presented in a fairer way.
“What we would not want to do is to kneejerk in such a way that people
were frightened of investing in any way, shape or form.”
Skandia head of pensions marketing Peter Jordan says: “It would be a nega-
tive move to ban past performance and irresponsible to ignore the track
record of the fund manager or the fund management group.”