OSC Identifies Issues With Investment Funds' Marketing Materials

The Ontario Securities Commission Investment Funds Branch released a notice today setting out the findings of a targeted continuous disclosure review of advertising and marketing materials of publicly offered investment funds. While the review included conventional mutual funds, closed-end funds, exchange-traded funds, commodity pools and labour sponsored investment funds, the OSC focused to some degree on conventional mutual funds as the advertising with this type of fund is primarily targeted to retail investors.

While the report noted general compliance with disclosure requirements related to sales communications, a number of issues were identified. For example, the OSC noted that some basic requirements like providing the date of first publication for a written sales communication, were frequently not met. Ultimately, the reviews led to, among other things, a commitment by fund managers to review older marketing materials more frequently to ensure they remain in