Mooted regulatory bill unsettles IPR financial group

The IPR City and Financial Group is fighting the present draft of the Financial Services and Markets Bill, which it claims will prevent financial PR practitioners from promoting their clients.

The IPR City and Financial Group is fighting the present draft of

the Financial Services and Markets Bill, which it claims will prevent

financial PR practitioners from promoting their clients.



Clause 19 of the Bill, which is currently being debated by a standing

committee, states: ’A person must not communicate or cause to be

communicated an invitation to engage in investment activity or

information which is intended or might reasonably be intended to lead

directly or indirectly to engagement in such activity.’



Neil Mainland, chairman of the IPR City and Financial Group, said:

’There is a clear difference between the promotion of information about

clients and their products and the recommendation to buy their products.

If we lost that distinction, it would prove a serious threat to the

industry.’



The Treasury has denied that PR will be affected by the bill, claiming

the legislation is aimed at clients, not agencies.



Mainland plans to approach the Treasury to ensure the restrictions are

not passed by default. The bill, which outlines the new Financial

Services Authority’s powers, is not expected to be passed until the

autumn.



The IPR City and Financial Group’s present standing on this issue

mirrors its comments at the end of last year (PR Week, 13 November) that

financial PR agencies should implement self-regulation.



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