Keep Investment Marketing Clear, EU Watchdog Warns Firms

Law360, London (May 28, 2021, 3:52 PM BST) -- Businesses handling alternative and venture capital investments should ensure that their marketing communications are clear and not misleading, the European Union's markets watchdog has said in a report setting out its guidance on the distribution of funds across borders.

The report from the European Securities and Markets Authority said the finance firms are not obliged to explain all their terms in their marketing communications, which must be fair, clear and not misleading. But definitions that might not be understood by retail investors, or individuals using their own money to trade, have to be made clear.

The regulator was responding on Thursday...

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