The Financial Services Authority (FSA) has launched a hotline for the public and companies to report misleading advertisements for financial products. The Hotline (08457 300 168) is already up and running and available from 8am to 8pm, Monday to Friday. Callers' details will remain strictly confidential.
The FSA recently introduced new rules that state that all past performance must be set out in a table, showing percentage annual returns for the previous five years. If less than five years' performance is available, firms should give data for as many 12-month periods as possible. Products less than a year old may not show any performance data.
In the past year the FSA has dealt with 580 advertising-related cases with 359 different firms. It can ask firms to amend or withdraw their adverts and even offer customers their money back. In the most serious cases, the FSA can also fine and publicly name the firm.
