Thursday, 10 January 2019 09:04

FCA’s Bailey warns CEOs over ‘misleading’ financial promotions

Rate this item
(1 Vote)
Andrew Bailey Andrew Bailey

FCA chief executive Andrew Bailey has warned firms not to ‘mislead’ customers over investments.

In a letter to CEOs yesterday Mr Bailey reminded firms’ senior managers and boards of what constitutes “fair, clear and unambiguous” financial promotions.

The warning came after the watchdog discovered firms were issuing financial promotions which suggested or implied that all of the activities which they undertake were regulated when that was not the case.

The letter, which has been seen by Financial Planning Today, read: “Some of the firms that we regulate undertake both regulated and unregulated business.

“We have recently become aware of firms issuing financial promotions which suggest or imply that all of the activities which they undertake are regulated by us and/or the PRA when, in fact, they are not.

Elsewhere in the letter Mr Bailey wrote: “All financial promotions must be fair, clear and not misleading.

“Part of meeting this standard includes ensuring that (where relevant) those to whom a financial promotion is addressed, or at whom it is directed, understand the extent of the relevant firm’s business that is regulated.”

Commenting on the letter Jonathan Davidson, executive director of supervision – retail and authorisations at the FCA, warned: “It is completely unacceptable for firms, which are regulated for some of their business, to market unregulated investments by implying to customers that all their business is regulated. 

“We are committed to stamping out this misleading practice and recommend that customers should ask firms whether what they are buying is really regulated by the FCA.”


FREE. Get more stories like this daily to your inbox. Unsubscribe at any time. Sign up now.

FINANCIAL PLANNING JOBS - Save 10% with this code 
Reach 12,000+ potential candidates by advertising your vacancy with us. Set up an account and post your job in minutes. Big savings for advertising 2 or more vacancies.
2019 Special Offer: Save money - Use code 'FPJSaver10' on checkout to save. Click here for details: