Ads showing dollars on fire lands robo-advisor firm in hot water

A regulator has ordered a ban on controversial advertising campaign by an Islamic finance start-up following scores of complaints alleging they were offensive to viewers.

The New York-based robo-advisor firm at the center of the controversy, Wahed Invest, caters to a predominantly Muslim client base, offering services and products that allow them to invest in a way aligned with their faith and values. 

The firm is registered with the Securities and Exchange Commission, which has ordered numerous penalties against Wahed Invest over the years for shortfalls and violations in its marketing practices.

In 2022, the SEC charged the firm for allegedly misleading customers over a roughly 10-month period concerning the existence of proprietary investments on its platform. The regulator handed down another order against Wahed Invest in November, saying the firm violated the Marketing Rule as it had failed to make necessary disclosures as it engaged MMA fighters and other athletes to endorse its platform.

Wahed Invest's latest regulatory run-in occurred in the UK, where it's regulated by the Financial Conduct Authority and its advertising practices fall under the oversight of the Advertising Standards Authority.

As reported by the Financial Times, one poster depicted prominent Muslim preacher Ismail ibn Musa Menk, who serves as the grand mufti of Zimbabwe, holding an open briefcase filled with burning US dollar and euro banknotes, accompanied by the caption: “Withdraw from Exploitation.” The ad went on to blast the practice of interest-based lending – held as taboo in Islamic circles – claiming it fuels wealth inequality.

Another ad, featuring both Menk and former professional MMA fighter Khabib Nurmagomedov, included the tagline: “Join the Money Revolution.”

The campaign generated 75 complaints, prompting the Advertising Standards Authority to launch an investigation. The regulator concluded that the imagery and messages were “likely to cause serious offence” to some viewers, particularly those in the Eurozone or the US, who might view their currency as a symbol of national identity.

"Although we acknowledged Wahed Invest's view that they had not directly criticised a specific group, and that depictions of burning banknotes were commonly encountered, we considered the burning of banknotes would have caused serious offence to some viewers," the regulator said. "We therefore concluded that the ads were likely to cause serious offence."

In response to the ruling, Wahed Invest acknowledged the concerns raised but defended the campaign's intent. A spokesperson for the company said: “While our intention was to spark thought and awareness, we recognize the importance of ensuring that messaging resonates positively with the diverse audiences that may consume them.”

The robo-advisor described the burning banknotes as a “powerful visual illustration” of inflation eroding the value of stored money. Global, the media partner for the campaign, said it had submitted the ads for review and was advised they were unlikely to raise issues.

Transport for London, which had allowed the campaign on its transit network, has since paused all ads from Wahed Invest pending the investigation’s outcome.

The ASA instructed Wahed Invest to avoid similar imagery in future campaigns and ensure that ads do not cause widespread offence.