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Marketing Guidance For Portfolio Managers Published By Canadian Securities Administrators

Canadian Securities Administrators publish notice to help portfolio managers.

Canadian Securities Administrators publish notice to help portfolio managers.

Staff Notice 31-325 was published on Tuesday by the Canadian Securities Administrators (CSA) with its aim to provide guidance for the preparation as well as the review and the use of marketing materials by portfolio managers.

During a recent compliance review of over 50 portfolio managers the focus was on marketing practices, and this guidance is based on the findings identified there. The CSA is encouraging portfolio managers, and other individuals and companies to use the guidance provided in this Staff Notice to assess their own marketing practices, so that they make improvements where necessary.

The Chair of the CSA and Chair and CEO of the Alberta Securities Commission, Mr. Bill Rice had this to say “To offer better protection to the investor community, securities regulators need to understand the ways in which portfolio managers are marketing their services and experience, and how these marketing efforts influence investors. The findings of the review will also be useful to industry, as they generated numerous recommendations that will assist portfolio managers in meeting their legal obligation to deal fairly, honestly and in good faith with their clients.”

The CSA is also providing guidance to companies about using social media platforms for their marketing strategies, along with the challenges that this form of communication raises. The notice states that “There is increased risk that registrants may not be retaining adequate records of their business activities and client communications when using social media web sites. This is the result of interactive social media web sites that include the posting of both real time and static content. Registrants need to consider designing systems that will allow for compliant record retention as well as retrieval capability.”

In accordance with the securities laws, the notice gives recommendations about fair marketing practices, and the need to provide investors with statements which are fair and do not mislead the investor.

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Brent has an unusual background, an experienced CA who specializes in marketing applications. An accomplished artist, Brent also contributes to the Business and General News categories.

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