WIREDGOV

A Financial Services Authority (FSA) review of advertising on financial firms' websites has found that three-quarters met the standards required. However, the findings, published recently, also show that a significant minority of the websites sampled failed to present information in a fair, clear and not misleading way.

The review – which involved 130 visits to 77 firms' websites – concluded that, although the majority of the sample met the FSA's financial promotions requirements, the remaining quarter were difficult for consumers to navigate and failed to sign-post key information.

Standards have improved since the FSA stepped up its supervision of internet-based promotions following reviews in 2005 and 2006, which identified widespread failings. Today the FSA is publishing examples of good and bad practice to further help firms address failings in their web-based advertising.

Dan Waters, Director of Retail Policy and Themes at the FSA, said:

"For many people the internet is the channel of choice for shopping around for financial products. However, it can expose consumers to high risk as they are able to make instant purchases without advice. This is why it is so important that firms' websites are fair, clear and not misleading.

"Although many firms' website-based promotions are meeting our requirements, we expect the senior management of all regulated firms to ensure their customers are treated fairly – and we will be looking at promotional websites again early next year to make sure that firms have taken our findings on board and are taking website design seriously."

The firms should take immediate steps to improve their websites. The FSA will be carrying out a further review in March 2008 and will take action if it finds further failings.

Notes for editors

1. Full details of the review and the earlier reviews, published in March 2005 and February 2006, are available on the FSA website.
2. The FSA has today also published its review of firms' use of sponsored links on its website.
3. The FSA operates a proactive, risk-based approach to financial promotions focusing on areas where consumers could be most at risk. Information on the FSA's financial promotions work can be found on the financial promotions section of this website.
4. Anyone who sees a website or other promotion that they think is misleading can report it by calling the FSA's Financial Promotions hotline on 08457 300 168.
5. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
6. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.