After conducting a review into the advertising found on financial firms' websites, the Financial Services Authority (FSA) has found that only three-quarters conform to the required standards.
Whilst the majority met the regulator's standard criteria, the few that didn't were not presenting their information in a 'fair, clear and not misleading' way.
Involving 130 visits to 77 firms' websites, the review found that these sites were difficult for consumers to navigate and failed to sign-post key information.
The FSA has seen standards improve since it stepped up its supervision of internet-based promotions following reviews in 2005 and 2006, which identified widespread failings.
Dan Waters, director of retail policy and themes at the FSA, said: "For many people the internet is the channel of choice for shopping around for financial products. However, it can expose consumers to high risk as they are able to make instant purchases without advice. This is why it is so important that firms' websites are fair, clear and not misleading.
"Although many firms' website-based promotions are meeting our requirements, we expect the senior management of all regulated firms to ensure their customers are treated fairly – and we will be looking at promotional websites again early next year to make sure that firms have taken our findings on board and are taking website design seriously."
The firms should take immediate steps to improve their websites. The FSA will be carrying out a further review in March 2008 and will take action if it finds further failings
