TORONTO, Nov. 9 /CNW/ - The Ontario Securities Commission (OSC) today
published OSC Staff Notice 33-729 Marketing practices of Investment
Counsel/Portfolio Managers following a focused review of marketing practices
by firms registered as investment counsel/portfolio managers (ICPMs).
The Notice summarizes key findings of the review of 21 ICPMs conducted by
the Compliance team of the OSC. As noted in OSC Staff Notice 33-728 2007
Annual Report - Compliance team, marketing issues remain the top significant
deficiency identified in Compliance field reviews of ICPMs. In particular,
staff has seen a rise in the number of issues in the marketing practices of
ICPMs for non-prospectus qualified securities, such as pooled funds and hedge
funds. The recent review was designed to gain a better understanding of the
type and content of marketing materials used by ICPMs, assess compliance with
Ontario securities laws, and to identify any regulatory gaps.
Staff Notice 33-729 outlines a number of suggested practices designed to
assist registrants in meeting their obligation to deal fairly, honestly and in
good faith with their clients. Among the recommendations, the notice suggests
that ICPMs ensure that performance data be based on actual returns, not
hypothetical figures, and be calculated using a consistent methodology.
OSC Staff Notice 33-729 Marketing practices of Investment
Counsel/Portfolio Managers is available in the Rules, Policies & Notices
section of the OSC website www.osc.gov.on.ca.
For further information:
For further information: For Media Inquiries: Wendy Dey, Director,
Communications & Public Affairs, (416) 593-8120; Laurie Gillett, Manager,
Public Affairs, (416) 595-8913; Carolyn Shaw-Rimmington, Assistant Manager,
Public Affairs, (416) 593-2361; For Investor Inquiries: OSC Contact Centre,
(416) 593-8314, 1-877-785-1555 (Toll Free)