In its 2001/2 Annual Report, The Consumer Panel said:
"The financial promotions review has picked up on the main issues we raised last year, in particular the need for balanced presentation of risks and benefits, and how important it is that firms and the public have a clear understanding of the standards that the FSA expects. We also emphasised to the FSA that any recommendations must be founded on consumer research and testing and we are pleased that the FSA has made extensive use of these.

The Past Performance Task force was set up to tackle the regulation of advertisements that make a major selling point of funds' past returns. We welcomed its recommendations and note that the FSA is already taking them forward, and - in addition to focused monitoring - has published a consultation paper on rule and guidance changes."

Since then, the Panel has continued to express its concerns to the FSA about misleading financial advertisements and members have themselves drawn some adverts that they believe to be misleading to the attention of the FSA. Some of the adverts may be subsequently withdrawn, but there is no public warning system from the FSA to tell consumers about a misleading advert. One of the reasons for this, the Panel understands, is that the Financial Services and Markets Act prevents the FSA from 'naming' in public firms whose adverts are thought to be misleading, unless the full enforcement process is invoked and the firm found to be in the wrong. This can take some time. The Panel will take this up with the Treasury when it undertakes a review of the Act. Meanwhile, we are continuing to discuss with the FSA ways in which consumers can be alerted to adverts considered to be misleading.