ESMA is consulting on draft guidelines to specify the requirements for marketing communications promoting both UCITS and AIFs under the Regulation on facilitating cross-border distribution of collective investment undertakings. The guidelines focus on the need for material to:
- be identifiable as marketing material;
- describe risks and rewards equally prominently; and
- be clear, fair and not misleading.
The paper looks at the responsibilities of the fund managers as well as considering what should be included within the definition of “marketing communication”. ESMA proposes both a list of types of communication that are marketing communications, including online communications, and a list of those that are not (specifically the required legal and regulatory documents). The paper also discusses how the clear, fair and not misleading test could be assessed differently depending on the target audience.
ESMA asks for comment by 8 February 2021.