6.2 However, even where there is such a "suitability" requirement, the regulatory regime may require either as a specific obligation or as a matter of industry best practice, that financial intermediaries adequately disclose material facts to investors when recommending the purchase of CIS units. Material facts about the CIS product may include:  the investment objective and policies of the CIS; historical performance; applicable expenses and charges assessed by the CIS or intermediaries; and risks of investing in the CIS relative to other investments. Disclosure of other facts may be required if circumstances reveal that the investor would regard a fact as material to his decision to invest in the CIS.

6.3 In some jurisdictions, financial intermediaries are responsible for delivering the prospectus and sales material of a CIS to the investor. The financial intermediary may be liable for oral representations made to a customer that are inconsistent with the disclosures in the prospectus and sales literature.

6.4 The regulatory regime may impose on financial intermediaries responsibility for developing and maintaining appropriate internal controls, and supervisory and compliance procedures, to ensure that CIS sales practices comply with all relevant rules and are consistent with high standards of commercial practice.

6.5 The regulatory authority conducting compliance reviews of financial intermediaries may review internal procedures and may review accounts for abusive transactions, such as those which involve excessive "switching" among portfolios to generate fees and unsuitable diversification, or generally where a financial intermediary recommends that an investor liquidate an investment and reinvest in another for the purpose of providing income to the intermediary.