The Canadian Securities
Administrators released a staff notice yesterday
summarizing findings from a focused compliance review of the
marketing practices of firms registered as portfolio managers. The
review, which looked at a representative sample of 56 portfolio
managers, identified a number of deficiencies in the preparation,
review and use of marketing materials, including with respect to
the use of hypothetical performance data, exaggerated claims and
the use of benchmarks. The notice also provides guidance with
respect to suggested practices to address specific concerns.
Interestingly, the notice also includes a discussion of the use
of social media for marketing purposes. While the CSA found that
portfolio managers do not generally employ social media to
currently market services, firms may be considering doing so. To
that end, the CSA state that they expect firms and registered
individuals to comply with regulatory requirements and legislation
in using such
