Month: December 2020

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ASA publishes ruling banning adverts which irresponsibly encouraged consumers to take credit by linking it with lifting or boosting mood

On 23 December 2020, the Advertising Standards Authority published a ruling banning adverts by influencers deciding they had irresponsibly encouraged customers to take credit with Klarna to pay for goods by linking that with lifting or boosting mood.

The ASA decided that “each ad promoted the use of Klarna’s deferred payment services” and the influencers had “linked buying beauty or clothing products … with enhancing their mood during an uncertain and challenging period, when many people were experiencing difficult circumstances and isolation during the lockdown, including financial concerns and mental health problems“.

The ASA also decided that one of the adverts “linked the use of Klarna with boosting one’s mood in lockdown” and “in the context of the challenging circumstances caused by the lockdown at the time, including impacts on people’s financial and mental health, the ads irresponsibly encouraged the use of credit to improve people’s mood“.

The ASA ruled the “ads must not appear again in its current form“. The ASA also told Klarna Bank AB, and the influencers, that “their future advertising must not irresponsibly encourage the use of Klarna’s deferred payment service, particularly by linking it with lifting or boosting mood“.

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FCA publishes updated expectations to help solo-regulated firms apply the SMCR following the exceptional circumstances of COVID-19

On 18 December 2020, the UK Financial Conduct Authority published updated information on its expectations to help solo-regulated firms apply the Senior Managers & Certification Regime (‘SMCR’) following the exceptional circumstances of COVID-19.

This follows the FCA’s publication in April 2020.

The FCA:

– says it expects firms’ application of the SMCR rules will shortly return to normal;

– maintains its position that firms do not need to have a single Senior Manager responsible for a firm’s response to COVID-19;

– says its relaxation of the requirement for firms needing to make temporary arrangements because of COVID-19 to submit updated Statements of Responsibilities (if certain conditions were met) will end on 7 January 2021 (but firms do not need to submit updated Statements of Responsibilities for changes before 7 January 2021);

– confirms the opportunity to modify by consent for temporary arrangements for senior management functions lasting longer than 12 weeks will end on 30 April 2021 (and all consented modifications will end on 30 April 2021); and

– has made very little change to its position on furloughed staff.

The FCA and the Prudential Regulation Authority also jointly published (on 18 December 2020) an updated statement on the impact of COVID-19 on SMCR for dual regulated firms.