Industry sources have confirmed a review of Financial Promotions by the FSA is imminent. However, it is believed it will leave mortgages and general insurance out of the equation and that the regulator is aiming for a move to more principle-based guidelines for Financial Promotions along the lines of its ‘Treating Customers Fairly’ (TCF) project.
One source said: “Financial Promotions is the hot topic in the industry at the moment and shows no sign of going away. An FSA review has been discussed and it may have come a bit too quickly, following regulation, for mortgages and general insurance especially as the regulator seems to have underestimated the resources required for this area.”
Tracy Mullins, director of public affairs at the Association of Mortgage Intermediaries (AMI), said: “This matter has been discussed. AMI would be happy if mortgages are not included in the review as brokers are still getting to grips with the Financial Promotions rules and it’s clear some of them are not working well.”
Tony Jones, managing director of Pink Home Loans, said: “Financial Promotions need to have clear guidelines, specific standards and show clarity. A principle-based approach is all well and good for such areas as TCF and product development but it would be difficult to achieve with regards to Financial Promotions.”
David Whitely, spokesperson at the FSA, said: “We are constantly looking at Financial Promotions and we’re unable to say at this stage if there is to be a review excluding mortgages and general insurance.”
