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Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002)

Board Notices

Specific Code of Conduct for Authorised Financial Services Providers and Representatives conducting Short-term Deposit Business, 2004

Part IV : Advertising

10. Advertising


(1) An advertisement by any provider regarding a deposit must—
(a) not contain any statement, promise or forecast which is fraudulent, untrue or misleading;
(b) if it contains—
(i) performance data (including awards and rankings), include references to their source and date;
(ii) illustrations, forecasts or hypothetical data—
(aa) contain support in the form of clearly stated basic assumptions (including but not limited to any relevant assumptions in respect of performance, returns, costs and charges) with a reasonable prospect of being met under current circumstances;
(bb) make it clear that they are not guaranteed and are provided for illustrative purposes only; and
(cc) also contain, where returns or benefits are dependent on the performance of underlying assets or other variable market factors, clear indications of such dependence;
(iii) a warning statement about risks involved in buying or investing in a deposit, prominently display such statement;
(iv) information about past performances, also contain a warning that past performances are not necessarily indicative of future performances; and
(c) if the investment value of a deposit mentioned in the advertisement is not guaranteed, contain a warning that no guarantees are provided.


(2) Where a provider advertises a deposit by telephone—
(a) an electronic, voicelogged record of all communications must be maintained. Where no financial service is rendered as a result of the advertisement, such record need not be maintained for a period exceeding 45 days;
(b) a copy of all such records must be provided on request by the client or the registrar within seven days of the request;
(c) the client must be provided with basic details (such as business name and telephone number or address) of the provider, and of its relevant compliance department.


(3) Where a provider advertises a financial service or product by means of a public radio service, the advertisement must include the business name of the provider.