ISBA launches bid to overhaul financial ads

The Incorporated Society for British Advertisers (ISBA) is pressing for a radical overhaul of the complex and cumbersome regulations surrounding financial service ads.

The organisation is urging members to support its submissions to two parallel consultations by the Financial Services Authority (FSA) and the Department for Trade and Industry (DTI), which ISBA claims could lead to the “biggest shake-up in decades” for advertisers in this sector.

The first consultation, in mid-September, is by the FSA and proposes lifting the requirement for extensive and detailed legal information in print ads for mortgages. Instead the FSA wants to introduce a requirement that “equal prominence” must be given to the benefits and drawbacks of products, a move that ISBA believes could potentially confuse customers further and goes against the core purpose of advertising.

“We believe that in press ads a warning such as ‘your home is at risk if you do not pay your mortgage’ is sufficient,” says ISBA director of public affairs Ian Twinn.

He argues that consumers should be given full information of the financial risks when they actually buy an advertised product.

A second consultation by the DTI in October aims to overhaul the Consumer Credit Act to “create a regime that simplifies advertising rules and focuses on the essential information”. While the two consultations are separate, the DTI has stated it will ensure that rules in the Consumer Credit Act are consistent with the new FSA regulations.

According to ISBA, the two consultations offer an “unprecedented opportunity” to achieve “greater transparency and clarity for consumers” in financial service ads.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here