Ads for investment products non-compliant
An estimated 42% of advertisements for investment products were found to not comply with all of the Financial Service Authority’s (FSA’s) regulations, according to the Consumer Panel.
Following the FSA’s call for insurance comparison websites to be clear, fair and not misleading, research from the Consumer Panel found that 43% of mortgage adverts were found to be non-compliant, compared with 47% two years ago. General insurance adverts, however, improved, with 2% found to be non-compliant, compared to 79% two years ago.
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.”
Ashton Berkhauer, insurance expert at comparison site uSwitch, said: “We welcome any initiative that will result in increased consumer confidence and are happy to be actively involved in any consultations on this issue.”
Stephen Haddrill, director general of the Association of British Insurers, said that he supports the FSA’s efforts to make sure that comparison sites are of a high quality. “We support their guidance, and plans for regular visits to firms. We also believe the FSA’s review should be extended to cover all financial services comparison websites,” he added.