The notice sets out guidance from staff of the OSC’s Investment Funds Branch based on a targeted continuous disclosure review of the advertising and marketing materials (including presentations, internet ads, social media, radio ads, email blasts and green sheets) of publicly offered investment funds.
The notice provides guidance on the definition of sales communication, the use of “advisor only” materials and internal or confidential communications. It also indicates that when assessing sales communications of mutual funds and non-redeemable investment funds, Staff will look to the parameters in Part 15 of National Instrument 81-102 (NI 81-102) to inform their reviews. Staff consider the NI 81-102 principles to serve as best-practice standards for the marketing materials of all types of investment funds.
The Staff Notice also provides guidance on the fairness of sales communications, misleading sales communications, specific disclosure requirements for commodity pools, use of performance data and performance awards and the use of alternative media.
