Regulators withdraw policy on TV and radio ads

In conjunction with CSA Staff Notice 11-323 Withdrawal of Notices and Policies, the Alberta Securities Commission and the British Columbia Securities Commission have announced the withdrawal or revocation of National Policy 42 Advertising of Securities on Radio or Television (NP 42).

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NP 42 was first adopted in 1989 when the Canadian Radio and Television Commission (the CRTC) removed regulations around advertising securities on radio and television. Staff at the ASC and BCSC are of the view that NP 42 is no longer necessary in light of other guidance and information that has been published by various members of the Canadian Securities Administrators (CSA) since NP 42 was adopted. These include:

• Section 6.3 of Companion Policy 41-101CP General Prospectus Requirements
• CSA news release Canadian securities regulators warn issuers using mass advertising
• CSA Multilateral Staff Notice 51-336 Issuers using mass advertising
• CSA Investor Watch Advertisements promoting investment opportunities
• BC Policy 47-601 Advertising

Securities legislation in all provinces and territories also includes prohibitions against misrepresentation, which apply regardless of the form of advertising being used.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.