FSA acknowledges MI Financial Promotions campaign

Ramesh Sharma

June 1, 2004

Thomas Reeh, chief executive of blackandwhite.co.uk, contacted MI after receiving a letter from the regulator in response to MI articles he submitted to it during an FSA visit.

The letter highlighted and addressed his concerns in one story about the lack of action being taken by the FSA on non-compliant Financial Promotions.

He said: “I take this as a great positive that the FSA has listened and acknowledged our voice and the voice of MI on this matter. The letter reiterated its commitment to the supervisory control and policing of this area and explained its processes and guidelines in regard to the promotions.

“The FSA says it deals with most cases by getting firms to withdraw or amend their promotions and sees this as the most effective way of reducing customer risk.

“The bottom line is we have been very vocal in asking for action; all we are after is a level playing field and I agree with the sentiments of the letter that the industry should whistle-blow. I have replied to it in appreciation of its personal contact but stressed that we will continue to push this issue.”

Payam Azadi, head of marketing at The Mortgage Times Group, commented: “It is a difficult area for directly authorised firms not under a network’s compliance umbrella. Unfortunately, with business volumes being so high, time is scarce to us to police this particular area.”

Paul Hunt, head of marketing at Platform, said: “The rules are there for everyone to adhere to but not everyone is complying. It is positive that the FSA has recognised and responded to this area and people in the industry also need to play their part.”

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