The Financial Service Authority fined the leading spread betting firm for a promotional campaign which appeared in national daily newspapers and magazines between September and November 2003.
The FSA said the campaign had the potential to attract customers to high-risk investments without adequately describing the risks.
“City Index failed to warn investors about this on every advert and where they did, it was not always in a simple and prominent manner.”
The promotion also referred to a “free £25 bet.” The FSA said the bet was not free because customers had to place an initial spread bet and potentially lose much more before becoming entitled to the “free bet.”
“Providing clear, fair and not misleading financial promotions is a key priority for the FSA because of the potential impact that misleading promotions can have on consumers,” said Anna Bradley, director of the FSA\’s retail themes division.
Calculators
