Advertisers attack FSA over regulatory plan

The Incorporated Society of British Advertisers (ISBA) has accused the Financial Services Authority (FSA) of trying to reduce the effectiveness of financial service products’ advertising.

ISBA’s accusation follows the publication of a new FSA consultation paper on its latest regulatory plans.

The FSA wants to regulate the use of past performance statistics in financial services advertising, which it does not believe to be a reliable guide to future performance.

Investment marketing relies heavily on the use of past performance statistics in its advertising, to persuade customers to buy funds and other investments.

According to ISBA, regulations on the use of past performance statistics in advertising could result in the dropping of advertising for individual investment products in favour of greater generic brand advertising. This, says ISBA, will ultimately deny the consumer legitimate product information.

ISBA director of public affairs Ian Twinn says: “The FSA’s proposals to regulate the use of past performance data appear to rest on a fundamental belief that this is never relevant information for the consumer. ISBA does not believe the FSA has satisfactorily established this fundamental point.”

ISBA recently called on the Government and the FSA to spend money to promote saving and make products such as ISAs accessible during a closed-door meeting with the FSA and financial services companies (MW May 30).

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

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

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big 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 are 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.

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