It is important to know when a communication constitutes a solicitation for a separate segregated fund (SSF) in order to know whether the required notices and restricted class requirements have been triggered.
What constitutes a solicitation
A straightforward request for contributions is a solicitation. However, a communication about the SSF could also constitute a solicitation if it:
- Publicizes the SSF’s right to accept unsolicited contributions from any lawful contributor;
- Provides information on how to contribute to the SSF; or
- Encourages support for the SSF.
What is not a solicitation
In advisory opinions, the Commission has concluded that a communication concerning the SSF is not a solicitation if it:
- Does not encourage support for the SSF; and
- Does not facilitate the making of contributions to the SSF.