Mark Turner, Kroll, Comments On FCA's Rules To Protect Consumers

Mark Turner, managing director in Kroll’s Financial Services Compliance and Regulation practice comments on the FCA’s stronger rules to protect consumers from rogue financial promotions announced today:

“Today’s announcement by the FCA is the latest in a line of significant changes being made to financial promotion requirements in the UK. Both the Government and the FCA recognise that financial promotions and marketing are likely to be the most regular contact that consumers have with firms offering financial products and services. Very often a promotion or advert will contain information on which the consumer relies on when reaching a decision. There have been many cases over recent years where consumer harm has been caused in part due to misleading statements in promotion materials.

This change to the regulatory framework will mean the FCA has greater powers to act, ensure that those approving adverts have the appropriate expertise to do so and that firms are held accountable for the promotions they sign-off. If firms have not already done so, they should be reviewing their approach to creating and approving consumer communications, update policies and procedures in-line with approaching changes to regulation, and train staff on the new requirements.”