South Africa’s Financial Conduct Authority fines African Bank For Misleading Ad Campaign

South Africa’s Financial Sector Conduct Authority has slapped African Bank with a $38,000 fine for false advertising after a December 2023 social media campaign blurred the lines between loans and investments. The ads, featuring a popular South African celeb, pitched personal loans with the tagline: It’s not debt, friend! It’s an investment The FSCA says this marketing move misled consumers by painting a credit facility as an investment product, violating section six of its conduct standards that require financial ads to be clear, fair, factually correct, and free from false promises or forecasts. The regulator also flagged oversight failures in African Bank’s governance process, over the approval and review of advertising materials, further breaching another part of section 6 of the Conduct Standard.

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