ESMA finalises marketing guidelines

ESMA has clarified its guidelines on standards for fund marketing. Following its consultation, the guidelines detail how all marketing communications should:

  • be identifiable as such;
  • describe the risks and rewards of purchasing units or shares of an AIF or units of a UCITS in an equally prominent manner; and
  • contain clear, fair and not misleading information, taking into account the on-line aspects of marketing communications.

The guidelines apply to investors and potential investors in UCITS and AIFs of any type and clarify key issues such as:

  • what a marketing communication is
  • application to different forms of media
  • suggested wording
  • use of font and size of text
  • positioning of text on risks and rewards
  • suitability of materials for their intended market
  • description of the investment
  • presentation of information on risks, rewards and costs and
  • prominence and presentation of information on performance

Emma Radmore