Additional Disclosure (continued)
Marginal note:Required content — all advertisements
Marginal note:Required content — advertisements referring to a note’s features or interest payable
(2) In each of its advertisements that refer to features of principal protected notes or the interest payable under them, an institution must also disclose
(a) the manner in which interest is to be accrued, and any limitations in respect of the interest payable;
(b) if the advertisement gives an example of a situation in which interest would be payable, an example of another situation in which no interest would be payable;
(c) if the advertisement gives an example of a situation in which interest would be payable that is in addition to any minimum interest that is guaranteed, an example of another situation in which only the minimum interest would be payable; and
(d) if the notes relate to deposits that are not eligible for deposit insurance coverage by the Canada Deposit Insurance Corporation, the fact that they are not eligible.
Marginal note:Market performance
(3) An institution that uses past market performance in an advertisement for a principal protected note shall represent that performance fairly and, if hypothetical examples are used, the assumptions underlying those examples must be realistic and must be disclosed in the advertisement. The institution must also disclose in the advertisement that past market performance is not an indicator of future market performance.
Coming into Force
Marginal note:July 1, 2008
15 These Regulations come into force on July 1, 2008.
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