Regulatory Alerts2024-06-21
Added · Updated
Marketing Campaigns and Selling Practices in relation to Financial Products and the Use of Cold-Calling
The Authority requires regulated persons distributing financial products, particularly pension plans, to ensure marketing communications are fair, clear, and not misleading by balancing product features with tax incentives. Cold calling practices are subject to strict oversight, prohibiting the use of tax rebates as a primary hook and forbidding inaccurate comparisons with competitors under Rule R.4.1.12 of the Conduct of Business Rulebook. Distributors must provide timely, understandable information, avoid giving the impression of providing personal advice when not authorized, and maintain accurate records of sales processes. Compliance officers must formally approve all marketing materials and scripts, while firms must monitor tied intermediaries to ensure honest conduct and minimize unsolicited calls.
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