Memorandum of Understanding between the FCA and the ASA published

The FCA has published a Memorandum of Understanding between the FCA and the ASA.

The MoU sets out the areas of responsibility for the FCA and ASA in relation to advertising in the financial services industry.  It also sets out a framework for the sharing of information and powers of enforcement.

The general principle is that the FCA and the ASA will coordinate to ensure that the most appropriate body is reviewing complaints and/or taking enforcement action.  They will exchange information where possible and where it is appropriate to their respective objectives.  They will continue to make rules and policies on their own but will coordinate where any such policy or rule will have a material impact on the other body.

Some further specifics:

  • non-broadcast advertisements – the ASA has jurisdiction over those elements not regulated by the FCA.
  • broadcast advertisements – BCAP applies to all broadcast financial promotions and the ASA may seek advice on these from the FCA.  The FCA has jurisdiction over those broadcast financial promotions that fall under its remit.
  • The ASA will refer complaints to the FCA regarding deposits, investment business, mortgages, general insurance, consumer credit, pure protection products, payment services, claims management (where the complaint refers to the advert being unclear, unfair or misleading, or where impermissible comparisons have been made)
  • The FCA will refer all matters that fall out its financial promotions remit to the ASA – complainants will be informed if it has re-directed a complaint to the ASA.

Caroline Stevenson