The FSA's initiative to force firms to show discrete per-iods of five years when using past performance in advertising is widely supported by IFAs according to the State of the IFA Nation poll.
Seventy-eight per cent support the new FSA rules which state that firms will no longer be able to use “cherrypicked” data about past fund performance in ads.
Standardised data must instead be used showing discrete annual returns in the form of a table. With less than five years' performance data available, a company should give much information as possible, updated to the previous quarter.
Clifton Associates of Bristol IFA June Williams says: “Anything that makes it easier for the clients is going to be useful. However, there is so much gobbledygook and statistics can be made to mean whatever you wish.”