The move comes in response to increasing concern in the market about non-compliant promotions by regulated firms.
The guide, which is currently being written, will explain what intermediaries need to consider when issuing promotions and will cover examples of good and bad practice in the market today. As background, Mortgages plc is researching the consumer press to identify trends.
Commenting on the decision to produce the guide, Julian Wells, Head of Marketing at Mortgages plc said: "We have been alarmed by some of the recent press coverage about non-compliant advertising. In our analysis of a recent edition of a well-known consumer mortgage magazine, over 25% of all mortgage advertising was not compliant. The guilty parties included lenders and brokers. We do not plan to name and shame but something needs to be done urgently to help raise awareness and understanding in the industry.
“The FSA is increasingly focusing on Financial Promotions and it is vital for firms to get fully up to speed with this aspect of mortgage regulation. You just have to look on the FSA website to see the size of the fines the FSA has already levied against offenders in other industries. Only last month City Index was fined £35,000. The mortgage market seems to be blind to the dangers of flaunting the rules, and if we don’t get our house in order we are in for a rude awakening."
