FIN.

BCAP consults on Code amendment for unregulated investments

The Broadcast Committee of Advertising Practice is consulting on an amendment to its Code in respect of how it restricts advertising for certain products. There is already in place a rule that restricts ads for certain complex financial products to specialised channels only, but it now appears that the wording unintentionally bans TV ads for mass market financial products that would not generally be understood to be investments. It has identified unregulated BNPL products as the key area affected by the wide interpretation, and plans to go forward with its proposals since, although the Labour government has pledged to legislate for more regulation of these products, it has not yet done anything.

The BCAP amendment would clarify that the restriction applies to unregulated products that would be regarded as “investments” in the conventional sense.

Consultation closes on 31 October.

Emma Radmore