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Executive Bylaws - CMA

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Executive Bylaws

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  • February 17
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2-22-5 Controls of Promotional or Marketing Material of a Fund Of Module Thirteen: Collective Investment Schemes
Section: Chapter Two: Funds
  • Monday, 13 February 2017

    The Fund Manager shall, upon preparation of the Promotional or Marketing Material, comply with the following controls: 1. Guarantees: The promotion should not include a description of the Fund to be guaranteed, contrary to the truth. In the event where a Fund is guaranteed, the promotion should include a statement about the minimum guaranteed capital and details of the guarantor as well as the mechanism of guarantee. 2. Comparisons: The Fund Manager must verify that any comparison that may be mentioned in the promotion between the Fund’s performance and other activities are correct, fair and balanced, and that the comparison thereof does not oversee any material matter. 3. Past Performance: The information related to the past performance of the Fund or the Fund Manager, which is included in the promotion, the following shall be required: a. It shall constitute a fair presentation of past performance of the Fund or the Fund Manager. b. It shall not be selected to exaggerate the performance of the Fund or the Fund Manager. c. It shall set forth the source of information. d. It should be based on verifiable information. 4. Change in the value of Units: In the events where the prices and value of the Funds Units may change, the promotion must include a statement indicating that prices, value, or income may decrease, and the investor should be informed that he may redeem an amount less than the amount invested thereby. 5. Convenience: If the promotion includes or indicates a recommendation concerning a Fund of a special nature, the promotion shall warn that the Fund may not be suitable for every Person receiving such promotion and that if any Person has doubts, then they shall refer to the advisor thereof. 6. Return on Investment: If the Fund is described that it is suitable for an investor endeavouring in particular to gain income from the investment thereof, such investor shall be warned against that such Fund’s income may change. 7. Funds in Foreign Currency: If the Fund is in a foreign currency, the investor should be warned against the change of exchange rates that may result in a negative effect on the value, price, or income of the Fund’s Units. 8. The promotion must indicate any fees due on the Fund’s Units, if any.

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