Marketing Material Guidelines and Compliance FAQ
38.
39.
Question
Answer
Information on the Advertisement Issuer
For an advertisement issuer which is a
subsidiary of an international group, is it
acceptable to disclose only the global name or
logo as the advertisement issuer?
The full name of the advertisement issuer must be disclosed, which may be presented in the
footnotes. The global name and/or logo may be presented in the same advertisements with
higher prominence.
Marketing materials that highlight or advertise the regular dividend payment / distribution feature of an SFC-authorized fund
Can a fund highlight or advertise the fund's
Investors may make their investment decisions based on prominent description of regular
regular dividend payment / distribution feature in (e.g. monthly) dividend payment / distribution in advertisements of funds. Such prominent
the marketing materials?
description would create an impression, and lead to a reasonable expectation by such
investors, that a regular fixed dividend payment / distribution derived from income will be
made by the funds. As such, management companies must observe the following overriding
principles when issuing marketing materials which highlight or advertise this regular
distribution feature of their funds / share classes:
a. any statement / description of regular (e.g. monthly) dividend payment / distribution
by a fund must be made on the basis of a good faith and genuine intention and aim of
the management company to make regular dividend payments / distributions;
b. it must be within the reasonable contemplation of the management company to
provide dividend payment as highlighted or advertised in the marketing materials. In
this connection, the management company must be able to justify and demonstrate
the fund's ability to provide regular dividend payment / distribution as advertised; and
c. the management company should keep investors informed in a timely manner should
there be any changes that may materially impair the fund's ability to make such
distribution.
Management companies should exercise their professional judgment in a prudent manner in
this regard. In addition, they must ensure compliance of, among other applicable regulatory
and legal requirements, the guidance under FAQ39A - 39E below in issuing marketing
materials. The SFC reserves its right to take appropriate regulatory actions against issuers in
respect of marketing materials that are in breach of applicable regulatory requirements in
order to ensure investors' interests are safeguarded.
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