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