SEC Guidelines

Goals

To gain an understanding of current proposed updates to the SEC guidelines, with a specific focus on marketing/advertising

Early Findings

  • This week (Nov 4, 2019) the SEC announced that it would modernize the Investment Advisers Act which addressed investment adviser advertisements and payments to solicitors.
  • The proposal would involve permitting the use of testimonials, endorsements, and third-party ratings.
  • The proposal also includes tailored requirements for the "presentation of performance results based on an advertisement’s intended audience".
  • It would also expand existing rules in order to include solicitation arrangements involving all forms of compensation which previous only covered cash related solicitations.
  • The SEC also recently changed the definition of advertising for including modern and digital forms, to "any communication, disseminated by any means ... that seeks to obtain or retain advisory clients or investors."
  • The new rules would also include standardization of performance information, as well as promotion of portfolio results.



Proposed next steps:

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