Circulaire No. 07/CREPMF/2022 on Advertising Communication Requirements

WEST AFRICAN MONETARY UNION
CREPMF
REGIONAL COUNCIL FOR PUBLIC SAVINGS AND FINANCIAL MARKETS

CIRCULAR NO. 07 /CREPMF/ 2022
ON ADVERTISING COMMUNICATION REQUIREMENTS

The General Secretariat of the Regional Council for Public Savings and Financial Markets (CREPMF) reminds approved Collective Investment Schemes (OPC) and Management Companies of OPC (SGO) on the regional financial market of the West African Monetary Union (UMOA) that, in accordance with current regulations, they must permanently comply, as part of their approval, with the provisions of this Circular specifying the requirements for advertising communications.

1. General Provisions

A Management Company of OPC ensures that any reference to an OPC in a press article, advertisement, internet release, or other medium appears only after the issuance of the approval or registration authorizing the marketing of the OPC by the Regional Council.

2. Use of the Regulator's Name in Promotional Documents

Information directed at investors and potential investors does not use the name of the Regional Council or another authority in a manner that indicates or implies that the Regional Council or that authority approves or endorses the OPC. The approval or registration of the OPC is not used as a commercial selling point.

3. Clear, Accurate, and Non-misleading Communication

The requirement for clear, accurate, and non-misleading communication applies to any information intended:

• for investors and potential investors;
• to present a product to intermediaries who themselves will inform end clients, such as all sales training materials.

It also applies to information published by a third party on social media that is shared or reposted by the Management Company of OPC or the distributor. In this case, information shared by the Management Company of OPC or the distributor is of a nature that engages their liability, on equal footing with that of the originator.

The requirement for clear, accurate, and non-misleading communication does not mandate that each communication contains all information necessary for an informed decision. The level of precision of the contained information is modulated according to the nature of the communication.

4. Accuracy of Information

The accuracy of information relies on a balanced presentation of the various characteristics of the OPC. Risks must be presented as prominently as advantages. The space reserved for less favorable characteristics in the document and the typography used determine the accuracy of the information.

5. Clarity of Information

The information must be sufficient to enable an investor to understand the main characteristics of the OPC in which they invest. They must be able to evaluate its advantages and risks. The vocabulary used in the presentation of the OPC must be understood by the target customer group to which it is directed.

6. Misleading Nature

Misleading information is information that deceives the investor through a distorted or incomplete presentation of the OPC, with the aim of promoting its sale.

Practices that present the OPC primarily under its most favorable characteristics are also classified as misleading.

7. Communication on Performance and Outperformance Fees

The indication of past performance does not constitute the main element of communicated information.

A statement is included in the communication noting that past performance does not guarantee future results.

A stylized performance graph in the background of an advertisement, without axes, and not necessarily reflecting the actual behavior of the OPC or displaying only positive figures, is not permitted in advertising communications.

The sources and reference period used to calculate outperformance fees are provided in a footnote.

This information must not be distorted by font size and choice.

The present Circular takes effect upon its publication.

Done in Abidjan, on 03 JAN 2022

The General Secretary
Ripert BOSSOUKPE