By James Langton
(May 8 – 17:35 ET) – The Investment Funds Institute of Canada has published a notice detailing dos and don’ts for websites. It examines issues such as jurisdiction, security, privacy and chat rooms.
For example, IFIC notes that dealers should get permission and credit any materials from third party sources that are to be used online. Firms may be liable for anything that happens in chat rooms that they host, so they should be monitored and policed, IFIC warns.
IFIC notes that the Canadian Securities Administrators will hold dealers accountable for anything furthering securities trading, including their Web sites, so their sites must comply with all local securities laws.
On the upside IFIC notes that Web sites may qualify for co-op marketing sponsorship, within the confines of the National sales practices rule.