EUROPE: ESMA Consults on Guidance for Funds Marketing Communications

Tuesday November 10 2020

The European Securities and Markets Authority (ESMA) has launched a consultation on guidelines on marketing communications under the Regulation on facilitating cross-border distribution of collective investment undertakings.

The purpose of the draft guidelines is to specify the requirements for marketing communications sent to investors in order to promote UCITS and AIFs, including EuSEFs, EuVECAs and ELTIFs. These requirements are that the material shall:

• be identifiable as marketing material;
• describe the risks and rewards of purchasing units or shares of an AIF or units of a UCITS in an equally prominent manner; and
• contain information which is fair, clear and not misleading.

The guidelines take into account the on-line aspects of marketing communications.

Consultation Content

Section 2 explains the background to our proposals. Sections 3 to 6 give detailed explanations on the content of the proposals and seek stakeholders’ input through specific questions.

Annex I contains the legislative mandate set out in the Regulation to develop the Guidelines.

Annex II sets out the cost-benefit analysis related to the draft guidelines.

Annex III sets out the list of questions contained in this paper.

Annex IV contains the full text of the draft guidelines.

Next steps

ESMA invites feedback from interested stakeholders on the proposed guidelines by 8 February 2021 and will consider this feedback with a view to issue final guidelines by 2 August 2021.

Click on the link for further information.