Marketing Material Guidelines and Compliance FAQ

Question Answer 39F. Can the SFC provide some illustrative examples regarding FAQ39A to FAQ39E above? Certain examples illustrating the disclosure requirements referred to in FAQ39A to FAQ39E above are set out at the following link: http://www.sfc.hk/web/EN/files/PCIP/FAQ/illustrative%20examples%20for%20FAQ39F%20on %20AD%20of%20CIS%20auth%20under%20Product%20Code.pdf Please note that the above examples are for illustrative purposes only and are not meant to be complete or exhaustive. Issuers of marketing materials are reminded to ensure marketing materials of SFC-authorized funds issued are in compliance with all applicable requirements, including the Advertising Guidelines and the guidance set out in FAQ39 to FAQ39E above. They are welcome to contact the relevant case officers in the Investment Products Division should they have any questions regarding these FAQ. Marketing materials that highlight or advertise the fees and charges of an SFC-authorized fund 39G. Under what circumstances can a fund highlight or advertise any incentives (e.g. reduction or waiver) of fees and charges in the marketing materials? Financial or other incentives in investing in a product should not be used or presented in marketing materials in such a way that it is likely to divert or mislead investors' focus from the proper consideration of the product. As such, to give investors a balanced picture, a fund may highlight or advertise any fee incentives (e.g. a fee cut/waiver or zero/low management fee, subscription fee or redemption fee) in its marketing materials only if such statement is accompanied with disclosure of the fund's resulting ongoing charges figure² of similar prominence and in close proximity in the body of the marketing materials. Supplementary information such as the calculation basis (including the reference date if applicable) of the ongoing charges figure may be disclosed by way of footnotes in the fund's marketing materials. 2 Such ongoing charges figure as disclosed is expected to take into account the fee incentives being advertised and must be calculated in accordance with the Circular to Management Companies of SFC-authorized Funds entitled "Disclosure of the ongoing charges figure and past performance information in the Product Key Facts Statements" revised as of 3 March 2017 (as amended from time to time). 20

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