Commercial radio could carry shorter and clearer consumer credit adverts under new proposals from the Financial Conduct Authority.
Radiocentre has welcomed the consultation, which looks at simplifying the rules around financial promotions and how representative credit examples are presented in advertising.
The trade body says the changes would make audio adverts easier for listeners to understand while reducing the amount of airtime taken up by detailed terms and conditions.
Radiocentre has worked with the FCA on the issue for several years. Confirmed industry guidance covering radio advertising was renewed at the start of this year.
Research submitted by Radiocentre last year found that simpler credit examples significantly improved listener recall. The study by Differentology suggested that clearer and more concise wording could increase recall by three to four times.
The FCA has set out proposals to simplify parts of its handbook dealing with financial promotions as part of a consultation launched on 29th April. It is inviting discussion on how its cost disclosure rules, including the presentation of representative credit examples in ads, could be amended to promote better consumer understanding.
Radiocentre chief executive Matt Payton said: “These proposals are a real step forward. All the evidence suggests that listeners would welcome the simplification of ads that feature consumer credit.”
He added that more suitable rules for audio advertising would benefit both listeners and advertisers.