Marketing Material Guidelines and Compliance FAQ slide image

Marketing Material Guidelines and Compliance FAQ

7. Question Applications of the Advertising Guidelines There is a transitional provision for the adoption of the Advertising Guidelines where advertisement issuers may follow the advertising guidelines in the respective Product Codes that were effective prior to 1 August 2008 (the old advertising guidelines) or the new Advertising Guidelines during the period up to 31 December 2008. Is it permissible for an issuer to adopt partially the old advertising guidelines and partially the new guidelines? Answer d. e. Use of terms like “Guarantee” could be misleading unless what is being guaranteed is clearly spelt out. Also, if the guarantee is only available under very restrictive conditions and in limited circumstances, it may not be fair to use the word "guarantee" generally to describe the product. Financial or other incentives in investing in a product should not be used or presented in such a way that it is likely to divert or mislead investors' focus from the proper consideration of the product. While the SFC does not pre-vet marketing materials of SFC-authorized collective investment schemes other than those where they are not exempt under s. 103 of the Securities and Futures Ordinance (such as ILAS, MPF and Pooled retirement fund products), the SFC conducts surveillance on all marketing materials, and will take all necessary action against issuers in respect of marketing materials that have not brought their product disclosure up-to- date in light of the new circumstances and concerns in the market. Certain examples illustrating the disclosure/presentation that would not be considered to be in accordance with the guidance set out in this FAQ 6A can be found at the following link http://www.sfc.hk/web/EN/files/PCIP/FAQ/Sharing_some_recent_topical_issues_re_SFC- authorized%20funds_15-Dec-2014_20150116.pdf. Please note that those examples are for illustrative purposes only and are not meant to be complete or exhaustive. Issuers of marketing materials are welcome to contact the relevant case officers in the Investment Products Division should they have any questions regarding the above. During the transitional period from 1 August 2008 to 31 December 2008, an advertisement issuer may adopt the old advertising guidelines for some of its advertisements and the new guidelines for other advertisements. However, for each advertisement, either the old or the new guidelines should be complied with in full. Adoption of selective provisions in the old and the new guidelines in an advertisement is not permitted. 4
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