Wed, Aug 17, 2022
The SEC’s new Marketing Rule redefines advertising and allows for marketing via new channels, in addition to enhancing existing disclosure requirements, and will have significant compliance impacts on advertising and cash solicitations for investment advisers registered, or required to be registered, with the SEC. What the SEC’s new marketing rules mean for your firm largely depends on your firm’s specific marketing and fundraising activities.
The new Marketing Rule has expanded the definition of advertising and allows for marketing via new channels. It also requires enhanced disclosures to clients, especially surrounding performance, and it will have significant compliance impacts on advertising and cash solicitations for investment advisers registered, or required to be registered, with the SEC.
The definition of “advertisement” will be amended to reflect two aspects, including any direct or indirect communication an investment adviser makes that:
Investment advisers may not disseminate any advertisement that:
The principles place a higher burden of proof on advisers, requiring them to maintain sufficient documentation to back up their claims.
Kroll’s team of compliance experts can help you navigate the SEC’s new Marketing Rule options and requirements and help you prepare for the rapidly approaching November deadline. We will develop and update tailored policies and procedures that are compliant and practical for your firm, address any implementation concerns, train your employees and assist with crafting appropriate and customized disclaimers to prepare you for the SEC's follow-up enforcement actions and exams.
To learn more about the new Marketing Rule and to prepare your firm for these upcoming changes, contact one of our experts.
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