The regulation of financial promotions is set to be brought under one set of rules as part of the Treasury review of the FSA.
The consultation paper has outlined concerns that the way in which promotions are regulated depends more on what regime the products fell under in the past rather than the amount of risk to consumers.
The move comes in the wake of problems over the marketing of split capital investment trusts and structured products.
The document says: “It would be possible to base the extent of regulation of financial promotions of different products on their risk rather than their sector. This approach is similar to that developed by the FSA in the intensity with which it regulates authorised firms.”
The FSA is also considering freeing Oeics from the the requirement to have an annual general meeting.