ESMA reviews cross-border marketing requirements
The European Securities and Markets Authority (ESMA) has published its second report on cross-border marketing requirements.
The report outlines marketing requirements across Member States, taking into account national laws, regulations and administrative provisions. It also stipulates the most frequent breaches of marketing requirements, identified by National Competent Authorities (NCAs) in two questionnaires used for the report.
- Lack of clear marketing material information
- Failure to describe risks and rewards of purchasing units or shares of investment funds
- Mismatch of legal documents and marketing materials, in particular in relation to the investment strategy
- Missing warning for investors to use the fund prospectus and KIID
- No clarity on where investors can find overview of their rights, in what language and where the hyperlink to the information is