Insurers will need to monitor the way they advertise any promotions on offer, following news that the FSA plan to track and fine any questionable advertising.
Insurers need to be careful to monitor the way they advertise any financial promotions on offer. According to the FSA, a hotline will be created to allow competitor firms to inform on any questionable advertising.
The creation of this new department will be revealed this week in the FSA's business plan - the first under new chief executive John Tiner. For the first time, the FSA will also be maintaining a watchful eye on the content of television commercials.
This vigilant move comes in the wake of a £165,000 fine for independant financial adviser Chase de Vere in December, and a £100,000 fine for IFA DBS Financial Management in March 2003 for sending misleading promotions to potential customers.
Staff of the new department will visit firms to ensure they are complying with its rules. The FSA stated: "We will build on work carried out in recent months examining specific areas of concern such as advertisements in regional newspapers and television commercials."
