Firms should review their financial promotions every three months to ensure they remain compliant, the FSA has suggested.
Speaking at a conference in London last week, director of the retail themes division Anna Bradley told delegates that they should be reviewing their financial promotions every quarter.
Bradley said a new financial promotions department would be stepping up contact with the industry using a range of regulatory tools, including enforcement, which will be increasingly used for companies which do not deliver. Firms will be subject to more extensive and thematic monitoring and a hotline will make it easier for firms and consumers to complain.
The FSA insists that Bradley's comments constitute a suggestion at this stage rather than a rule change but law firm Rey-nolds Porter Chamberlain is concerned that firms risk of being found in breach of the rules unless they abide by her suggestion.
FSA spokeswoman Jac-kie Blyth says: “Anna suggested under our treating customers fairly proposals that the senior management should be taking a more active role in financial promotions. She said this could mean looking at things every quarter but this is not a rule and would obviously have to be done according to a firm's size and output.”
RPC solicitor Harriet Quiney says: “If firms do not review their promotional material every three months, then while they might be able to demonstrate that what they have done is acceptable, there is a substantial chance that the FSA will find they have breached the clear, fair and not misleading guidelines as their promotion material will be out of date.”