Changes will be made to the way past performance data is used in advertising, according to a task fo...
Changes will be made to the way past performance data is used in advertising, according to a task force of industry and consumer representatives being set up by the FSA.
A three-point plan will be adopted to improve the way in which past performance data is presented to consumers, according to the FSA task force.
Current guidance - which states past performance should not be seen as an indicator of future growth - will become a rule in December.
Presentation of past performance information will be scrutinized new rules to strengthen advertising standards in this area will be introduced to clamp down on misleading claims.
A feasibility test will also be conducted to standardise the use of past performance, risk and price information in advertisements.
Christine Farnish, Consumer Director at the FSA and Chair of the Task Force, says:
"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.
"We will consult on proposed changes to regulatory rules and guidance and do further work on the feasibility of standardising information on past performance, risk and price."
Full report and the findings of research commissioned by the Task Force are available at www.fsa.gov.uk.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till