Advertisement on selling of mutual fund investment units must include mutual fund’s significant information for investor’s decision, for example, maturity date, type of fund, investment policy, risk factors and performance. For advertisement on group of mutual funds where it is not practical to provide all significant information of every fund, summarized information of every fund and warnings must be included. The fund’s significant information must be concise and sufficient in a format suitable for advertisement and must not be overshadowed by information on the giveaways.
“The guideline has been issued to protect investors as more information useful for making investment decision will be provided for investors instead of being overwhelmed by distracting giveaway information. Any advertisement found to be non-compliance with the guideline may be ceased or revised. In addition, asset management company or seller may be requested to provide clarification and its subsequent advertisement may be subject to the SEC’s prior approval. Already publicized advertisements must be revised within 15 days to be in compliance with the guideline. In this regard, advertisements launched by certain asset management companies and considered as compliance with the guideline have been chosen as examples for others,” said Deputy Secretary-General Vasant Thienhom.