The FSA is to consult further with the industry on the use of past performance in advertising. It ...
The FSA is to consult further with the industry on the use of past performance in advertising.
It has produced a three-point plan designed to improve the way in which past performance data is presented to consumers.
It proposes to intensify scrutiny of the presentation of such information, to introduce new rules to strengthen advertising standards and clamp down on misleading claims, and to assess the feasibility of standardising the use of past performance, risk and price information in ads.
Christine Farnish, consumer director at the FSA and chair of the task force, said: 'FSA action to address the task force's recommendations will begin immediately and we will open up a dialogue with all interested parties on how we can build on the existing safeguards.'
Richard Saunders, director general of Autif, said: 'Autif has long held the view that the current rules on the use of past performance data are in need of overhaul. We are keen to start a constructive dialogue with the FSA about how information for investors might be presented in a more meaningful way.'
The FSA's move is in response to the report by a task force it appointed on the issue of past performance. This concluded the current regime needs to change but did not suggest an outright ban of the practice.
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