Knowledge Base
Describe the rules and responsibilities related to advertising and promotional communications
Which body has jurisdiction to sanction misleading commercial practices in financial advertising?
The DGCCRF has complementary powers to sanction misleading commercial practices, with fines of up to 300,000 euros for natural persons and 1.5 million euros for legal entities.
What is the maximum fine that the AMF Sanctions Committee can impose on a legal entity for non-compliant promotional communications?
Article L. 621-15 of the CMF provides for fines of up to fifteen million euros for legal entities in cases of non-compliance.
What is the mandatory label for identifying the promotional nature of a communication on social media according to AMF Position-Recommendation DOC-2011-24?
AMF Position-Recommendation DOC-2011-24 requires the visible use of the hashtag #CommunicationPublicitaire on social media to identify the promotional nature of a communication.
Under Article L. 533-12 of the Code monétaire et financier, what characteristics must promotional communications of investment service providers meet?
Article L. 533-12 of the Code monétaire et financier stipulates that information, including promotional communications, must be accurate, clear and not misleading. These three characteristics form the foundation of any compliant commercial communication.
The use of wording such as 'safe investment' or 'guaranteed return' is permitted if accompanied by clarifying disclaimers.
The AMF expressly prohibits the use of misleading wording such as 'safe investment', 'guaranteed return' or 'assured performance', even if accompanied by clarifying disclaimers.
Past performance may constitute the primary element of an advertising communication without any specific disclaimer.
The AMF expressly prohibits the use of past performance as the primary element of a communication. Past performance must be accompanied by the mandatory disclaimer stating that it is not indicative of future performance.
Minimum reference period for the past performance of a UCITS with a KIID
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For UCITS with a KIID, a minimum reference period of ten years is required to display past performance.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Producers
Distributors
Producers (asset management companies and issuers) and distributors (investment service providers, financial investment advisors, banking institutions) have distinct but complementary responsibilities.