The FSA has published a speech by Tony Katz (Manager, Financial Promotions Team, FSA) entitled Financial Promotions and More Principles-Based Regulation - Freedom and Responsibility. In his speech Mr Katz discusses the FSA's approach to supervising financial promotions under a more principles-based regulatory regime. He also refers to two key impressions which are:

  • The FSA's move to more principles-based regulation represents an opportunity for innovation in advertising. Gone are many of the detailed and prescriptive rules. In its place the FSA has requirements which focus on principles and high level requirements.
  • Greater power to innovate leads to greater responsibility – responsibility for firms and in particular senior management to ensure that firms have the appropriate culture, systems and controls to achieve the right outcomes. There needs to be the right relationship between all those involved in delivering clear and fair promotions for consumers including the people responsible for the creatives, marketing and compliance.

In his speech Mr Katz also discusses the overarching responsibility placed on firms to ensure that their advertising is fair, clear and not misleading. He then focuses on the FSA’s treating customers fairly initiative, looking at providing clear communications and having appropriate management information.

View FSA speech - Financial Promotions and More Principles-Based Regulation - Freedom and Responsibility, 28 November 2007