Financial services are an area in which effective and efficient regulation is critical to consumer welfare, to businesses and to the UK economy as a whole. Simplification and deregulation are vital to ensuring that consumers are well-informed about the products they are purchasing. This in turn leads to a more competitive and more effective market for financial services, which benefits us all.
7 September 2011
The Advertising Association responds to the Treasury consultation on a new approach to financial regulation
In this response, the AA sets out its position on how a new regulatory framework for financial advertising can deliver strong consumer protection within a clearer and more proportional financial regulatory system. We comment on the proposed new financial promotions powers that will be given to Financial Conduct Authority (FCA) and raise our concerns about the lack of detail currently available with regard to these powers. We urge the Government to engage with the AA in the coming months as the regulatory framework is developed, and we ask that when considering the regulatory regime for financial advertising, that the role of the ASA in this space is fully understood and acknowledged.
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21 March 2011
Advertising Association response to Treasury consultation: "A new aproach to financial regulation"
In this paper, the Advertising Association outlines its support for any moves towards less and better regulation. We note our support for the Government's overriding policy objectives of simplification and deregulation st out in their consultation paper. We state that we are very keen to engage with the Government on the specific issues relating to advertising as the process of reforming these integral organisations goes forward.
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03 December 2010
Advertising Association response to the BIS Call for Evidence on Consumer Credit and Personal Insolvency
In this paper, the Advertising Association that advertising for financial services, as with advertising in any other sector, should not mislead or put prospective customers under undue pressure, and that it should also be fair. We provide details on the highly regulated environment in which advertising operates and the effectiveness of the ASA in regulating the "softer" issues within financial advertisements. We conclude that there is more than sufficient regulatory provision to ensure that advertising conducted by lenders is carried out in a responsible manner.
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24 February 2010
Response to HM Treasury consultation on mortgage regulation
The Advertising Association sets out its preference for second-charge mortgages to come under a single regulatory regime so as to avoid the duplication that presently exists in the form of the overlapping remits of the Financial Services Authority (FSA) and local trading standards services under the leadership of the Office of Fair Trading. The case is also made for advertisements for buy-to-let mortgages to continue to be successfully regulated by the Advertising Standards Authority, after the product itself comes under FSA regulation.
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30 November 2009
Response of the Advertising Association to the FSA consultation “Regulating sale and rent back – the full regime”
The response establishes the support of the Advertising Association for the continuance of the existing FSA financial promotions regime for sale and rent back agreements to apply, rather than for additional requirements being brought to bear on advertisements for such products. Having set out its analysis of each of the new (or amended) rules being proposed, the Advertising Association suggests alternative approaches where appropriate. In particular, the principled opposition of the advertising sector to the incorporation of mandatory information in advertisements is registered and proposals made as to how the introduction of the risk warning being considered by the FSA might, if retained post-consultation, be rendered more proportionate.
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23 October 2009
Response to Office of Fair Trading consultation on its draft irresponsible lending guidance
Highlights the degree to which the draft guidance, which contains references to advertising, simply reflects requirements already provided for in the Consumer Protection from Unfair Trading Regulations 2008, which are themselves reflected in the Committee of Advertising Practice and Broadcast Committee of Advertising Practice Codes. In the interests of regulatory simplicity, the case is also made for those elements of the draft guidance relating to the relative prominence of information in consumer credit advertisements, where legal requirements already apply, to be abandoned.
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17 June 2009
Response of the Advertising Association to the Department for Business, Innovation & Skills “Consultation on proposals for implementing the Consumer Credit Directive”
In this response the Advertising Association makes the case to DBIS for implementing those requirements contained within the Consumer Credit Directive relating to advertising in such a way as to minimize the detrimental impact the European legislation appears likely to have on media owners. The Advertising Association also makes the case to de-regulate a number of those requirements contained within the exiting Consumer Credit (Advertisements) Regulations 2004 (as amended) over which the UK Government retains discretion in order to off-set the anticipated detrimental impact of implementing the CCD, whilst retaining the high degree of protection that consumers deserve.
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07 May 2009
Response of the Advertising Association to the Financial Services Authority consultation “Regulating sale and rent back: an interim regime”
Establishes the support of the Advertising Association for the creation by the FSA of a bespoke regulatory regime for the sale and rent back sector and sets out its view that the rules for financial promotions being proposed by the Authority for the interim regime are proportionate. The Advertising Association also takes the opportunity in this response to argue that the FSA should not propose an expansion of those financial promotion rules in any consultation it conducts ahead of the creation of a full regulatory regime for the sale and rent back sector (currently scheduled to come into being during the second quarter of 2010).
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06 May 2009
Response of the Advertising Association to the HM Treasury consultation on regulating the sale and rent back market
Sets out why the Advertising Association considers that the proposal by Government that the sale and rent back market be regulated by the Financial Services Authority under the Financial Services and Markets Act 2000 is justified - with advertisements for such arrangements being treated as financial promotions being the logical corollary of such an approach. The Advertising Association also takes the opportunity, however, to identify those disadvantages from a consumer perspective that might be anticipated with responsibility for regulating the technical aspects of advertisements for sale and rent back agreements passing from the Advertising Standards Authority to the FSA.
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09 April 2009
Response of the Advertising Association to the Financial Services Authority consultation on Financial Services Compensation Scheme Reform: Fast payout for depositors and raising consumer awareness
In this response the Advertising Association endorses the decision by the Financial Services Authority to fund an advertising campaign aimed at raising awareness amongst consumers about the Financial Services Compensation Scheme. The Advertising Association goes on to makes recommendations in respect of the branding, timing, content and tone of any such campaign, based on the results of the market research commissioned by the Financial Services Authority, before making observations in respect of the range of advertising media channels it is proposed be used.
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24 February 2009
Response of the Advertising Association to the Financial Services Authority Consultation Paper “Regulating retail banking conduct of business” (24/02/09)
Mounts a defence of effective self-regulation in light of the likely replacement of the self-regulatory Banking Code Standards Board system with direct regulation by the Financial Services Authority in respect of deposit-taking activities by retail banks, including any financial promotions conducted by them. The response concludes by arguing that any decision to abandon self-regulation in this field should not foreclose the possibility of the FSA considering self-regulatory solutions in the financial services field, or elements thereof, in the future.
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27 August 2009
Response to the European Commission consultation on responsible lending and borrowing in the European Union
This response argues that the protections the Consumer Credit Directive will afford prospective borrowers around advertising should not be revisited by the EC before that 2008 Directive has even entered into force and had its efficacy judged. It is also underlined that whilst there may be no statutory regulation of mortgage advertising deriving from European legislation, Member States may already have their own legal framework covering such activities in place – as is the case in the UK.
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27 July 2009
Response to the European Commission consultation on Deposit-Guarantee Schemes
This response sets out the opposition of the Advertising Association to any proposal that would impose mandatory references to deposit-guarantee schemes in relevant financial services advertising (such as for savings accounts), given that such an intervention would be of no value to consumers, whilst imposing a significant and unnecessary burden on media owners.
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