Financial services companies should be named and shamed if they break advertising rules, an industry body has said.
The Financial Services Consumer Panel (FSCP) said 57 per cent of financial promotions it looked at as part of a review contained worrying breaches of advertising rules.
The group said the current regulation of financial advertising was not working, and called on City watchdog the Financial Services Authority (FSA) to be given the power to name and shame firms that broke the rules.
The FSCP looked at 220 financial adverts contained in national and local newspapers on a Saturday in February this year. It found that general insurance companies were most likely to produce promotions that did not comply with the rules, with 79 per cent of their adverts breaching them, while 47 per cent of mortgage adverts did not comply and 43 per cent of ones for investment products breached the regulations.