PR agencies could be fined for abusing privileged information or
issuing misleading information, according to a draft code for London
markets drawn up by City watchdog, the Financial Services Authority
The FSA code of conduct will bring increased regulation of financial PR
consultancies and in-house departments. The FSA proposes to fine
offenders variable amounts. Penalties will depend on factors such as the
nature of alleged misconduct, the level of loss involved and the costs
of recovering and distributing compensation.
The code will apply to agencies and companies dealing with six London
markets including the London Stock Exchange, London Securities
Derivatives Exchange, the London Metal Exchange and the London
International Financial Futures and Options Exchange (LIFFE).
The IPR’s City and Financial Group welcomed the code.
Stewart Prosser, chairman of the Group, said: ’This code will put PR in
line with other City advisers, such as brokers, bankers and accountants,
who are subject to even higher standards of regulation via
The IPR will be pushing for specific wording in the final code to make
its link to PR professionals more explicit.