Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the Advertising Standards Authority.
From 1 April 2019, the Financial Conduct Authority (FCA) assumed responsibility for the regulation of claims management companies (CMCs) across 6 sectors. The sectors where an authorised CMC can execute regulated activity are –
- financial services and products
- personal injury
- housing disrepair
- specified benefit
- criminal injury
- employment
Ads for these companies should adhere to the guidelines given in the ‘Financial promotions and communications with customers’ section of the Claims Management: Conduct of Business sourcebook (CMCOB 3).
Ads for products by FCA-regulated businesses (such as claims management companies) are likely to be outside the ASA’s remit. However, as with other financial ads, the CAP Code does apply to “non-technical” aspects of ads for these companies. Matters relating to offence, social responsibility, superiority claims, fear and distress, competitor denigration and claims that do not relate to specific characteristics of the product are likely to be considered as “non-technical”
If an advertiser is unsure about the legislation they need to comply with, marketers should seek legal advice. A section on the FCA’s website, entitled Financial Promotions, gives general advice such as ‘Key Issues’ and ‘FAQs’. Please note, however, that the FCA does not pre-approve proposed financial marketing communications for authorised firms - technical guidance is available on specific matters or rule interpretations only, not on the advertisement as a whole. See the FCA’s website for more information www.fca.org.uk.
See also: Financial Products and Services, Will Writers, Litigation: No Win, No Fee Claims, Litigation: Specious claims.