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Securities Services Act, 2004 (Act No. 36 of 2004)

Code of Conduct for Authorised Users

7. Advertisements

 

(1) Advertising material of an authorised user—
(a) must provide accurate, complete and unambiguous information about any security or security service;
(b) must emphasise the risk of loss and uncertainty of future results;
(c) must discern fact from opinion; and
(d) may not be comparative in relation to another authorised user.

 

(2) An advertisement by an authorised user—
(a) may not contain any statement, promise or forecast which is fraudulent, untrue or misleading;
(b) must, 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 selling a security, prominently render or display such statement; and
(iv) information about past performances, also contain a warning that past performances are not necessarily indicative of future performances; and
(c) must, if the investment value of a financial product mentioned in the advertisement is not guaranteed, contain a warning that no guarantees are provided.