Print friendly version 9 May 2008

Industry warned over non-compliant advertisements

Recent research has shown 43% of advertisements for mortgages do not comply with all of the Financial Service Authority’s (FSA’s) regulations.

The research, carried out by the Financial Services Consumer Panel, found that 43% of mortgage adverts were found to be non-compliant, compared with 47% two years ago.

Other areas, such as general insurance, showed a huge improvement, according to the Consumer Panel. Similar research carried out in this sector two years ago showed 79% of adverts were non-compliant, compared to just 2% now. Home reversion advertisements were not included in the last study as this sector was not regulated by the FSA at that time. The Consumer Panel said further scrutiny of home reversion scheme advertising was needed as a number of adverts were unclear, unfair and misleading.

Adam Phillips, acting chairman of the Financial Services Consumer Panel, said: “The FSA needs to do more publicly in this area and be true to its principle of being an open and transparent regulator. Then firms will be able to see clearly where the standards are set.”



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