Financial Service advertising regulation is detailed and proscriptive. Much comes in the form of implementing EU Directives. The result is not always helpful to consumers or business.
As responsible advertisers ISBA members seek to provide clear and accurate information to consumers. The CAP and BCAP codes apply to financial service advertising; however the details of product specific rules are provided by the Financial Services Authority (FSA) and implemented separately by them.
Regulations
There are advantages and disadvantages to the government administering the detailed rules that come from Brussels. However on balance ISBA believes that all the advertising regulation should live at the self-regulatory system at ASA/CAP, with experienced staff able to provide consistent advice and adjudications.
The merging of the authority with the Bank of England provides an opportunity for the government to consider if they should be in the business of doing a job that is already performed effectively by the ASA.
Disclaimers in advertising
The first aim of advertising regulation must be to protect consumers. There is a tendency for legislators to believe that consumer protection is achieved by compulsory ‘small print’ in ads. ISBA recognises that there is an important role for laying down essential information. However we also know that small print, disclaimers and legalese is mistrusted by the very consumers it seeks to protect. Sometimes the disclaimers are also the subject to public ridicule. Financial service advertising is particularly surrounded by the need to add qualifying statements; we believe the nature of the warnings, the inflexibility of the word requirements, and sometimes the need for them should be comprehensively reviewed.