ITC ADD TO PROGRAMME CODE COVERING FINANCIAL REPORTING

THE ITC have published an additional section to the Programme Code covering financial reporting.
With immediate effect the amendments incorporate aspects of the Financial Services And Markets Act (Financial Promotion Order) relating to financial reporting, which might impact on programmes that provide advice and guidance to viewers on financial matters, particularly the buying and selling of shares. The Financial Promotion Order took effect on 1 December 2001.
Following consultation with licensees last November, the new section reads:
No one involved in deciding the content of programming (including programme makers and expert guests), may contribute to the broadcast of material that promotes investment in a particular share in which they have a personal interest. Such personal interest extends to that of close family members, which constitutes a spouse and children under 18 years of age.
Additionally, any clearly identified chief executive, director or employee of a company, who appears as a guest in that capacity and speaks about the company is able to promote the shares of the company, and the financial products of an FSA-authorised company in the same group, provided he or she is not doing so as part of an organised marketing campaign. He or she can also promote the shares and financial products in writing e.g. on a licensee's website subject to the condition above and also that it is in the course of an interactive dialogue in which he or she is expected to respond immediately to questions put, typically where the guest is invited to take part in an email question and answer sessions.
Transparency of any personal interest, where the individual has potential to gain financially from the promotion of investment activity, is paramount. Therefore, licensees must have in place proper systems and procedures to ensure compliance with this rule. The Financial Services Authority suggest this could be achieved if the licensee requires people working on financial programmes to declare and register, for instance, their share ownership and to have this register available to the most senior editorial staff who can ensure that self-interested promotions are not broadcast by the person concerned. Relevant staff would be required to be made aware of the existence of this register and of their obligations to disclose financial interests and should confirm their acceptance of these obligations in writing.
A revised version of the ITC Programme Code will be issued shortly. (CD)