CMVM has published Circular 017/2023, of 19 December, with the aim of reinforcing the need to comply with the current regulatory framework on the disclosure of advertising for financial instruments and investment services.
In alignment with ESMA Guidelines 34-45-1272, this Circular sets forth several recommendations, among which:
- The recommendation that the compliance function and/or the management body of financial intermediaries and/or securities’ issuers to always be involved in the advertising approval process, even when these do not depend on pre-approval by the CMVM;
- The information contained in the advertising media gives a correct and clear indication of the relevant risks when referring to potential benefits of an investment service or a financial instrument;
- Advertising media must be unequivocally identified as such, namely, with regard to financial instruments or investment services, prominently contain the mention “advertisement” or “advertising” (or “PUB”, in the case of small-scale advertising dimension); and/or
- The abstention of using certain expressions that may suggest high returns (such as “attractive income potential”), without any clear explanation that such returns may not be obtained and that there is a risk of losing all or part of the investment.
The Circular no. 017/2023 is available here.