Is the advertising or selling of financial services products to consumers or to businesses via the Internet regulated, and if so by whom and in what manner?
Financial service providers need to register with the Financial services Board from which they receive a Financial Service Provider Number (SFP Number). Online advertising of financial services of products is [private]not regulated in any different manner than other advertising. The SFP number of a provider must be displayed in the advertisements of financial products or services.
The Financial Advisory and Intermediary Services Act 37 of 2002 makes provision for a code of conduct to be adopted with specific provisions relating to avoidance of fraudulent and misleading advertising, canvassing and marketing.
Reproduced with permission from Law Business Research. This article was first published in Getting the Deal Through – e-Commerce 2009, (published in August 2008 – contributing editor Robert Bond). For further information please visit www.GettingtheDealThrough.com.