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We anticipate that the Ofcom Broadcasting Code will be published in late May 2005. It will come into force a little later to allow licensees appropriate preparation and we will confirm this date nearer the time.

However, as noted in the consultation document at the time of publication (Annex 9 “Financial Reporting and Promotion of Investment), the Market Abuse Directive had not been implemented at that time in to UK law. The Investment Recommendation (Media) Regulations (“Regulations”), which reflect the directive, will now come into force on 1 July 2005. This provides certain exemptions for broadcasters from the new law, so long as they comply with alternative measures set out in the regulatory framework. For broadcasters this means Ofcom’s Broadcasting Code. We have therefore had to adjust our draft rule 10.17 of the draft Broadcasting Code, and the relevant appendix, to take into account these new regulations.

In order to comply with the Regulations, the new rule will come into force on 1 July 2005.

If you have any comments to make, please contact Sara Winter, Administration Manager, at sara.winter@ofcom.org.uk, by Friday 22 April 2005. It should be noted that the new sections of the rule and appendix, which refer to investment recommendations, address direct recommendations of specific investment decisions as opposed to more generic advice. The broadcaster’s responsibility under the Regulations and rule 10.17 as regards investment recommendations is limited to the behaviour of the broadcaster’s staff or freelance staff and a third party interviewee would have responsibility for making any appropriate disclosures to comply with the Regulations. If an investment recommendation is being made by staff there is a requirement to state that the broadcaster is regulated by the Ofcom Broadcasting Code. However, as stated in the revised draft appendix, a visual or oral statement in end credits will be acceptable for compliance purposes.

We apologise for the late notice on this matter, however the Regulations have only recently been approved and the wording has been subject to discussions between the Treasury and the Financial Services Authority and others before we were in a position to consult openly.

• Financial promotions and investment recommendations [pdf]
  Full print version
• Financial Promotions Appendix [pdf]
  Full print version

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