The regulators said the consultation revealed “broad support” for continuing to allow investors to buy foreign ETFs, but they’re introducing guidance that aims to address some of the concerns raised by foreign ETFs being available to Canadian investors. In particular, the guidance warns industry firms that actively promoting foreign ETFs in Canada could trigger the requirement for the funds to issue a prospectus, along with registration requirements for fund managers in certain jurisdictions. Active promotion includes soliciting dealers to recommend specific funds to investors, providing incentives to dealers to sell foreign ETFs, advertising, or targeting Canadian investors on social media — and allowing foreign ETFs to pop up in the results from research tools provided on fund managers’ websites, the guidance noted. On the distribution side, the guidance highlights how dealers and reps can meet their obligations when dealing in foreign ETFs — and, it calls on discount brokers to consider beefing up their upfront disclosure to investors before they buy foreign funds. “[A]n alert or notification for investors at a critical interaction point prior to the purchase of a foreign ETF could assist investors in understanding that there are key differences between investing in a foreign ETF and investing in a Canadian ETF,” it said.