On 27 May 2021, the European Securities and Markets Authority (ESMA) published a final report containing guidelines that specify the application of the requirements for marketing communications set out in Article 4(1) of the Regulation on the cross-border distribution of funds. In particular the guidelines establish common principles on the identification as such of marketing communications, the description of risks and rewards of purchasing units or shares of an alternative investment fund (AIF) or units of a UCITS in an equally prominent manner, and the fair, clear and not misleading character of marketing communications, taking into account the online aspects of such marketing communications.

The guidelines are not intended to replace existing national requirements on the information to be included in marketing communications (such as those relating to the fiscal treatment of the investment in the promoted fund) to the extent these are compatible with any existing harmonised EU rules (e.g. rules on disclosure of costs or performance in the KIID should not be contradicted or diminished by different national disclosure requirements on costs or performance in marketing communications).

The guidelines will be translated into the official languages of the EU and published on ESMA’s website. The publication of the translations will trigger a two-month period during which Member State national competent authorities must notify ESMA whether they comply or intend to comply with the guidelines. The guidelines will apply 6 months after the date of the publication of the translations.

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