Singapore legislation
Regulation 23
of Securities and Futures (Offers of Investments) (Collective Investment Schemes) Regulations 2005
Regulation 23
Contents of advertisement where units in collective investment scheme are already offered
If an offer in respect of units in a collective investment scheme is made at the time an advertisement or publication in relation to the scheme is advertised or published, the advertisement or publication —
shall state —
that a prospectus or profile statement in relation to the scheme is available;
how a copy of the prospectus or profile statement may be obtained;
that a potential investor should read the prospectus or profile statement before deciding whether to subscribe for or purchase units in the scheme; and
that the value of the units in the scheme and the income accruing to the units, if any, may fall or rise;
shall state the name of the responsible person for the scheme if the advertisement or publication does not otherwise clearly identify that person;
shall, where the name of the scheme is not indicative of the scheme’s investment objectives and focus, state the scheme’s investment objectives and focus;
shall, where the advertisement or publication includes a quotation expressing acclaim or approval for or recommending the scheme or the responsible person for the scheme, state the source of such quotation;
shall not, where there is no guarantee or warranty given as to —
the protection of the principal sum which a participant invests in the scheme (whether including or excluding the subscription fee); or
the rate of return on the scheme,use words such as “guarantee”, “warranty” or any other expression suggesting that the principal sum invested in or rate of return on the scheme is guaranteed, or that a participant cannot lose money;
shall, where the scheme is represented as a guaranteed scheme, state the name of the guarantor;
shall, where the scheme is a hedge fund or other high risk fund, indicate that an investment in the scheme involves a high degree of risk, and that investment in such a scheme is only appropriate for a person able and willing to take such a risk; and
shall, where the units of the scheme are listed or where an application has been or will be made for such units to be listed for quotation on the official list of any approved exchange, and all or most investors may only deal in the units through the approved exchange, include —
a statement that investors cannot redeem the units with the manager for the scheme or that investors may only redeem units with the manager for the scheme under certain specified conditions; and
a statement that the listing of the units does not guarantee a liquid market for the units.