By Eshana Lutawan, Marketing Manager at HF Quarters
For managers marketing to professional investors across Europe, following the ESMA framework for marketing communications can help strengthen investor confidence. National competent authorities have identified recurring issues, including failing to identify materials as marketing communications, presenting information that is not fair, clear and not misleading, and giving an unbalanced view of risks and potential returns. These issues can undermine the credibility of an institutional-facing website or marketing campaign.
Post-publication checks can still identify inconsistencies, making thorough pre-publication reviews particularly important. Marketing claims should also be supported by objective evidence and remain consistent across different channels.
Every marketing asset should be clearly identified as a marketing communication where required. The intended audience should be able to understand the purpose of the material immediately. Online messaging should also remain consistent with the fund’s official documentation, while language should be appropriate for the target market and avoid unsupported or misleading claims.
Short-form content, particularly on social media, requires additional care. Limited space can make it difficult to provide sufficient context, so claims, risk information and performance-related statements should be presented carefully and in a balanced manner.
Greater regulatory alignment across Europe can help managers maintain a consistent approach to institutional communications. An ESMA-aligned digital presence can therefore provide stronger regulatory discipline while supporting credibility with professional investors.
By applying the same principles across websites, social media and other digital channels clear identification, balanced presentation, consistency with fund documentation and ongoing review fund managers can build a digital presence that supports credibility and investor confidence.