Bigmouthmedia Calls For New Rules Governing Sale Of Financial Products Online
Released on: September 17, 2010, 2:50 pm
Bigmouthmedia has published a white paper calling for the
Financial Services Authority to introduce specific guidelines governing
the sale of financial products and services online.
While almost a quarter of all UK-based marketing spend is now online, there are
still no specific guidelines for how financial marketers should engage in online
marketing. Bigmouthmedia's white paper demonstrates growing cause for concern
amongst marketers that while the internet has created a unique set of conditions;
the FSA has yet to provide specific guidelines for marketers using the channel.
"It is time for the Financial Services Authority (FSA) to address one of the most
neglected issues of its time and produce a set of guidelines designed to help
financial services market their services both ethically and effectively. At a point
when restoring the industry's position in the public esteem remains of critical
importance, getting the message right online will be a significant step forward,"
said Chris Cathcart, Senior Finance Strategist at bigmouthmedia.
"The internet was in its infancy when the organisation founded to regulate the
finance sector first opened its doors, but in little more than a decade it has
revolutionised the way that consumers interact with the commercial world. We believe
that a specific set of rules developed to specifically address the unique conditions
surrounding online trade could bring an end to a lot of existing confusion."
Digital advertising formats make compliance with the standards set out for
traditional media extremely difficult, and in a culture where companies selling
financial products must be extremely vigilant against falling foul of legislation,
marketers find their ability to engage with the burgeoning marketplace restricted.
The problem, however, does not stop there.
As a recent bigmouthmedia survey revealed, consumers are less than content with the
way financial services are sold to them online. They demonstrate widespread mistrust
of the claims made of a raft of available products and a clear preference for terms
and conditions written in plain English they can understand.
“Bigmouthmedia's paper on the regulation of online financial distribution makes some very interesting observations on the distinction between online and
offline financial promotion, and the need for greater flexibility in the online
world to build up the picture for the consumer, rather than trying to deliver all
the jargon and protection information in the single advert view. It highlights the
need for 'Online' consumers to be afforded the same degree of protection as
'offline' but that the delivery needs to be different. At Money Dashboard we will
strongly support any regulatory initiatives that champion 'online' financial
consumers getting to a more intuitive and simplified view of product information to
assist them with financial decisions,” said Gavin Littlejohn, CEO of Money
Founded in 1997, bigmouthmedia is Europe's largest independent digital marketing
agency. With a team of over 200 staff located across 13 offices in 10 countries on 3
continents, the company maximises exposure for major brands online through a variety
of fully integrated digital marketing channels: Search engine optimisation, PPC,
Online Media Planning, affiliate marketing, Social
Networking, Brand Monitoring, Online PR and Web Analytics. Bigmouthmedia also
provides up to date daily digital marketing news to ensure clients
are fully informed and aware of all industry developments.
For further media information please contact:
(44) 131 555 4848
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