Marketing Material Guidelines and Compliance FAQ slide image

Marketing Material Guidelines and Compliance FAQ

Question Answer 12. General Principles The general principles require advertisements to In general terms, advertisements should include timely information that is suitable for contain information that is timely. distribution or publication at the prevailing market conditions. What is the meaning of "timely"? Specifically, paragraph 15 of the Advertising Guidelines provides that any performance information presented in an advertisement should be up to date. It should be no more than 3 months old if presented in print media (e.g. newspapers, magazines), broadcasts (e.g. television, radio) or interactive systems (e.g. websites, interactive voice message systems) and no more than 6 months old in other media. In any event, however, the above is subject to the caveat that performance information should be updated if more recent information is significantly different (e.g. varies by 10% or more). 13. 14. 15. 16. Performance information May fund sector averages be used as peer group comparison? What information is required to be given in the peer group description? For schemes with track record of less than 6 months, is it permissible to provide investors with performance information? On the presentation of minimum performance information pursuant to paragraph 12 of the Advertising Guidelines, is it mandatory to present the performance by calendar year? Yes, provided that the comparison should be fair, relevant and comparing “like with like" and that the source of information and a description of the sector is disclosed clearly. The description of a peer group should generally include the name of the rating organization and the category of schemes. For schemes with a track record of less than 6 months, it is not permissible to present performance information in advertisements (paragraph 11 of the Advertising Guidelines). Notwithstanding the above, a price listing showing the scheme prices of all (but not selected) dealing days since launch may be presented. No, it is not necessary to present the minimum performance information by calendar year. Such information may be made up to a recent reference date or the last financial year end date of the scheme for the preceding five 12-month periods. For example, an advertisement issued in August 2008 may present minimum performance information in one of the following manners. Such disclosure may be included in the main body or the footnotes of the advertisement. 6
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