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  • BC-2.3 BC-2.3 Marketing and Promotion

    • BC-2.3.1

      Investment firm licensees must ensure that all advertising and promotional material that is sent to any class of client is fair, clear and not misleading.

      Amended: January 2007

    • BC-2.3.2

      With respect to retail clients, in ensuring that the description of the product or the service in the promotional material is fair, clear and not misleading, the investment firm licensee should, among other precautionary measures, ensure that:

      a) The purpose, and to the extent practicable, the content, of the information or communication are likely to be understood by the average member of the group to whom the communication is addressed;
      b) Key items contained in the information are given due prominence;
      c) The method of presentation in the information does not disguise, diminish, or obscure important risks, warnings or information; and
      d) The communication does not omit information that is material to ensure it is fair, clear and not misleading.
      Amended: January 2007

    • BC-2.3.3

      In ensuring that the description of the product or the service in the promotional material is fair, the investment firm licensee should avoid exaggerating the potential benefits of the investment service or financial instrument in any communication with a retail client or potential retail client.

    • BC-2.3.4

      In ensuring that the description of the product or the service in relation to promotional material directed at retail clients is adequate, the investment firm licensee should ensure that the promotional material contains a balanced description of the main characteristics of the financial instrument and/or service to which it relates, including the nature of the financial commitment and risks involved; whether or not the financial instruments involved are illiquid, and traded in a recognised exchange or market; the existence or absence of any right of withdrawal or cancellation and, where such a right exists, its duration and the conditions for exercising it, including information on any amount that the retail client may be required to pay to exercise that right; and if the communication relates to a financial instrument or service of a person other than the investment firm licensee, the name of the person.

    • BC-2.3.5

      Investment firm licensees must ensure that the accuracy of all material statements of fact in promotional materials is supported by adequate evidence.

    • BC-2.3.6

      Investment firm licensees must not, in any form of communication with an individual client or any class of client, attempt to limit or avoid any duty or liability it may have to that individual client or class of client in relation to regulated investment services.

    • BC-2.3.7

      Investment firm licensees that underwrite or market public offerings must ensure that their promotional material complies with the relevant capital markets disclosure standards of the CBB.

      Amended: January 2007

    • BC-2.3.8

      Capital markets disclosure standards are currently contained in the Disclosure Standards Regulation of 3 December 2003.

    • Content of Promotions

      • BC-2.3.9

        Before an investment firm licensee communicates any promotional material to a client or a potential client it must ensure the promotional material at the very least contains the information laid out in Paragraph BC-2.12.1.

      • BC-2.3.10

        Investment firm licensees must not make use of the name of the CBB in any promotion in such a way that would indicate endorsement or approval of its products or services.

        Amended: January 2007

    • Records

      • BC-2.3.11

        Investment firm licensees must maintain a record of all promotional materials issued by them or on their behalf.

    • Real Time Promotions

      • BC-2.3.12

        Investment firm licensees must not make a real time promotion unless the client has been notified of the fact in advance and agreed to receive real time promotion.

        Amended: January 2007

      • BC-2.3.13

        For the purposes of Paragraph BC-2.3.12, a real time promotion is a promotion made in the course of a personal visit, telephone conversation or other interactive dialogue.

      • BC-2.3.14

        Consent to receive real time promotions could be, for instance, at the time of the initial client profiling, by means of signing a form clearly indicating such consent.

      • BC-2.3.15

        An employee of the investment firm licensee must, on making contact for the first time with a client, and again at any time when asked to do so by the client:

        (a) Identify himself as being an employee of the investment firm licensee;
        (b) State the name of the investment firm licensee; and
        (c) Present the client with a business card on meeting that client, unless he has given him such a card at a previous meeting. The business card must include the information specified in Section GR-2.2.
        Amended: October 2013
        Amended: January 2011
        January 2007

      • BC-2.3.16

        For the purposes of Rule BC-2.3.15(c), the statement on the business card should make clear the authorised status of the investment firm licensee; however it should not lead the client to believe that the product being offered has been approved by the CBB.

        Amended: January 2007

      • BC-2.3.17

        In oral communications with a retail client, whether in person or by telephone, the employee of the investment firm licensee must:

        (a) State the genuine purpose of the call at the commencement of the conversation;
        (b) Ascertain whether or not the client wishes him to proceed with the conversation if the time of the conversation was not previously agreed by the client;
        (c) Explain clearly the financial instruments or other services which he is authorised to arrange;
        (d) Recognise and respect the right of the client to terminate the call at any time; and
        (e) If he requests another appointment and the client refuses, shall accept that refusal courteously and in such a manner as to cause no embarrassment to the client.
        Amended: October 2013
        Amended: October 2011
        Amended: January 2007

    • Records

      • BC-2.3.18

        Investment firm licensees must keep sufficient records of real time promotions made by them, or on their behalf by other persons, for CBB's supervision purposes.

        Amended: January 2007

      • BC-2.3.19

        These records should include evidence that clients have been notified in advance and agreed to receive real time promotions, as required under Rule BC-2.3.12.

        Amended: January 2007