FSA and Financial Promotions

There have been two recent publications from the Regulator on ‘financial promotions’.

The first is consultative guidance on the topic of ‘prominence’ i.e. making sure that important details such as risk or fees are not hidden. As will be known the section of the FSA Handbook that governs ‘financial promotions’ is COBS 4 – which actually covers both ‘financial promotions’ and ‘communications’. The ‘fair, clear and not misleading’ requirement in COBS 4.2.1 applies to communications to both retail clients and to professional clients. The guidance provides examples of both good and bad practice.

The second is an industry update on FSA expectations when promoting Enterprise Investment Schemesor Venture Capital Trusts. Again the theme is ‘fair, clear and not misleading’ and ‘balance’.