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Life insurance buyers warned about misleading ads

Date: Tue, 25 Apr 2006

People considering a life insurance policy are being warned to make sure they avoid companies that produce misleading advertisements.

A new study by accounting firm Grant Thornton discovered that 76 per cent of financial ads fail to follow standards set by the UK's financial services watchdog.

Current regulations by the Financial Services Authority (FSA) require company advertisements for financial products to be clear and carry adequate risk warnings. The advertisements must also outline any possible penalties or charges and must not make misleading claims about the product.

Ian Gorham, a partner at Grant Thornton said that anyone planning to purchase a financial product including life insurance must do more research to ensure they are getting a fair deal.

He added: "Companies appear all too eager to inform potential customers of the benefits of their products without outlining the finer details of the risks involved or the commitments required."

"Advertisers need to play by the rules and not exploit a lack of awareness among their target market."


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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.