The Conduct of Business Sourcebook (COBS) 4.2 specifies that:
A firm must ensure that a communication or a financial promotion is fair, clear and not misleading.
The fair, clear and not misleading rule applies in a way that is appropriate and proportionate taking into account the means of communication and the information the communication is intended to convey. So a communication addressed to a professional client may not need to include the same information, or be presented in the same way, as a communication addressed to a retail client.
Avoid promoting a product in an unbalanced way. For example:
> Misleading headline claims
> Small print
> Insufficient prominence given to key risks
A consumer/prospective investor needs to be clear on what they are purchasing so that they can make an informed choice. Avoid:
> Insufficient product information
> An unfair or unrealistic impression of the product
Firms should not mislead consumers/prospective investors by:
> Showing overly prominent or cherry-picked data
> Creating unrealistic expectations
> Making claims that are misleading for the target market
You may also be interested in reading:
What is a Financial Promotion?
Financial Promotions - Prominence
Financial Promotions - Going Digital
Pure FS Support will manage and coordinate your financial promotion process ensuring that you adhere to the rules imposed by the FCA. See more about our financial promotions services and we look forward to discussing your requirements with you. Our contact details can be found here.