HISTORIC PRESS RELEASE : Treasury Consultation on Modernising the Regulation of Financial Promotion [March 1999]

The press release issued by HM Treasury on 17 March 1999.

A consultation document on the financial promotion regime under the Financial Services and Markets Bill is published by the Treasury today.

Announcing publication, Economic Secretary Patricia Hewitt said

“The regulation of the promotion of financial services is an important aspect of the new regulatory regime on which full consultation is needed. Now that shares, insurance and banking can be promoted on the Internet, the old rules on investment advertisements and cold calling are becoming out of date. We need a new regime of financial promotion that is technologically neutral and can quickly adapt to future changes. We want to be able to take the best possible account of the views of consumers, financial services firms and companies – particularly smaller companies – seeking to raise capital.

We have therefore decided to consult in two stages. This consultation paper sets out various aspects of the approach we propose for the new regime, in particular our approach to exemptions from the prohibition on financial promotion by unauthorised persons. We will take careful note of responses in our preparation of secondary legislation, which will then be published for comment in a further round of consultation. In drafting the secondary legislation we intend, wherever possible, to avoid unnecessary regulation.”.

Comments on the consultation document are sought by 30 April 1999. Following a consideration of responses, the Treasury will publish a further consultation document containing draft legislation setting out exemptions from the prohibition on unauthorised persons making financial promotions.