Summary of CySEC's Circular C473

Memo #46-2021
CySEC Circular No: C473
Date: 13/10/2021
Subject: ESMA Guidelines (ESMA34-45-1272) on marketing communications under the Regulation on cross-border distribution of funds
Purpose: To inform Regulated Entities that the ESMA has published Guidelines on marketing communications under the Regulation on crossborder distribution of funds.

In Summary:

CySEC has issued the Circular C473 on 13/10/2021 to inform the AIFMs (‘AIFMs’), UCITS Management Companies (‘UCITS MC’), Self-Managed UCITS (‘SM UCITS’) and EuVECA and EUSEF managers that the European Securities and Markets Authority (ESMA) has published on 2 August 2021, the Guidelines on marketing communications under the Regulation on cross-border distribution of funds (‘the Guidelines’).

These Guidelines further specify the requirements of article 4(1) of the Regulation (EU) 2019/1156 on facilitating cross-border distribution of collective investment undertakings and amending Regulations (EU) No 345/2013, (EU) No 346/2013 and (EU) No 1286/2014 ("the Regulation"), with regard to all associated marketing communications addressed to investors, including to any potential investors.

The Guidelines apply to:

a) UCITS management companies (‘UCITS MC’), including any self-managed UCITS (‘SM UCITS’), 
b) Alternative Investment Fund Managers (‘AIFMs’), 
c) EuVECA managers and EuSEF managers,
d) including those funds set up as ELTIFs and MMFs; and
e) Competent authorities.

The article 4(1) of the Regulation provides that the basic requirements for any marketing communication are to:

i. be identifiable as such;
ii. describe the risks and rewards of purchasing units or shares of an AIF or units of a UCITS in an equally prominent manner; and
iii. contain clear, fair and not misleading information, taking into account the online aspects of marketing communications.

The Guidelines also include a very broad meaning to what can constitute marketing communications, it provides examples of communications that should not be considered as marketing communications and provides a summary of several of the Guidelines’ key requirements.

These Guidelines will come into effect on 2 February 2022.

CySEC informs that it adopts these Guidelines by incorporating them into its supervisory practices and regulatory approach and that Regulated Entities must take the necessary actions in order to ensure their compliance with the Guidelines.

Read the CySEC Circular C473

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