Sygnia vindicated in Advertising Appeals Committee ruling
Sygnia Asset Management (Pty) Ltd is pleased to announce that the Advertising Appeals Committee (AAC) of the Advertising Regulatory Board has upheld its appeal against a previous ruling by the Advertising Regulatory Board Directorate. This decision validates our commitment to transparent and factual advertising practices.
CAPE TOWN, South Africa, 14 August, 2024 – Sygnia responded to the Advertising Appeals Committee ruling.
Sygnia Asset Management (Pty) Ltd is pleased to announce that the Advertising Appeals Committee (AAC) of the Advertising Regulatory Board has upheld its appeal against a previous ruling by the Advertising Regulatory Board Directorate. This decision validates our commitment to transparent and factual advertising practices.
Key points of the ruling:
The South African annuity market, though diverse, can be distilled into three primary choices: Life Annuities, where the insurer assumes the risk and the investor receives a fixed monthly pay-out for life; With-Profit Annuities, which provides bonuses for good returns and protects against negative returns for a fee; and Living Annuities, granting investors the freedom to invest across asset classes to predominantly live off inv
- The AAC found that Sygnia’s advertisement regarding potential savings in retirement annuity fees was substantiated and not misleading. In addition, the advertising claim was mathematically and factually accurate.
- The AAC said that it accepts that the message of the advertisement is that a consumer has little control over how their money is invested or what returns they are likely to receive – but they can control what fees they pay. And that is what Sygnia is encouraging the consumer to engage with.
- The AAC acknowledged that Sygnia’s has demonstrated through its independent modelling that a 2% reduction in fees can potentially yield a 60% greater benefit at retirement after 40 years, all else being equal.
- The ruling confirms that our advertisement does not contravene the Advertising Code.
Magda Wierzycka, CEO of Sygnia, commented: “We are deeply gratified that the Advertising Appeals Committee recognised the impact fees can have on consumers, as we do. This ruling isn’t just a vindication of our advertising; it’s a victory for consumer rights. At Sygnia, we’ve always believed that empowering investors to make more informed choices is crucial.”
She added that, “The AAC’s decision reinforces our long-held commitment to protecting consumers’ interests. By allowing us to continue educating the public about the long-term impact of fees, this ruling helps us in our mission to revolutionise the investment landscape for the benefit of all South Africans.”
Sygnia remains committed to empowering investors with clear, factual information to make informed decisions about their financial futures. We will continue to advocate for fee transparency and consumer education in the financial services industry.