Last Updated on June 3, 2025 by Arnaud Collignon
Guidelines on Marketing Communications under the Regulation on Cross-Border Distribution of Funds
The Commission de Surveillance du Secteur Financier (CSSF) has released comprehensive guidelines aimed at ensuring compliance with the new regulations governing the cross-border distribution of funds. These guidelines are essential for fund managers and distributors to navigate the complexities of marketing communications effectively.
Key Objectives of the Guidelines
- To enhance investor protection by ensuring that marketing communications are clear, fair, and not misleading.
- To promote transparency in the marketing of investment funds across borders.
- To establish a consistent framework for the dissemination of marketing materials.
Important Considerations
When preparing marketing communications, fund managers must consider the following:
- Clarity and Transparency: All communications should be easily understandable and provide a clear picture of the fund’s objectives, risks, and costs.
- Compliance with Local Regulations: Marketing materials must comply with the regulations of the jurisdictions in which the funds are marketed.
- Target Audience: Communications should be tailored to the specific needs and understanding of the intended audience.
Best Practices for Marketing Communications
To align with the CSSF guidelines, consider implementing the following best practices:
- Use straightforward language and avoid jargon that may confuse investors.
- Clearly disclose all fees and charges associated with the fund.
- Provide balanced information that highlights both the potential benefits and risks of investing.
Conclusion
Adhering to the CSSF guidelines is crucial for maintaining trust and integrity in the fund distribution process. By following these recommendations, fund managers can ensure that their marketing communications are not only compliant but also effective in reaching and educating potential investors.
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