Watchdog orders Ilanot to amend ads `to remove doubt'
The Israel Securities Authority has demanded that mutual fund management company Ilanot Discount change advertisements it has published in the print media. The campaign included tables ranking Ilanot Discount funds in first and second place in certain categories. However, the tables do not include yields achieved by private brokers' funds - many of which were much higher.
Israel Discount Bank's management company did note that the comparison included only bank funds but the Securities Authority said it was not well emphasized and demanded the amendments. Ilanot therefore added: "In some categories detailed in the tables, there are non-bank funds that achieved higher rankings."
The removal of non-bank funds and funds with different tax status, left certain categories with small samples. Mutual fund Ilanot Brosh came in first place in a three-fund category. Medium Ilanot Shekel had even more comfortable competition - no rivals at all.
Ilanot Discount said in response: "In June, Ilanot Discount published advertisements presenting our mutual funds achievements in various categories in comparison to bank mutual funds, as we are the management company of a banking corporation. The ads stated clearly that the comparison ranked competition among bank funds."
The management company added; "The ads were unequivocally approved by the necessary authorities. Nonetheless, the Securities Authority asked for the addition of a single sentence. The authority did not mention inaccuracies or misleading information, but asked to remove any doubt."