SEC Modernizes Marketing and Advertising Rules for Investment Advisers
January 7, 2021 - The SEC adopted new rules replacing the current advertising and cash solicitation rule. These new rules clarify and codify decades-old guidance and set forth a consistent principles-based standard that recognizes how modern investment advisers communicate with clients and prospective clients. Investment advisers have long been frustrated with the overly broad nature of the current rule which failed to articulate a specific standard by which they could make disclosures, such as performance data, offering testimonials, and third-party ratings.
While the SEC’s focus on preventing the dissemination of misleading material information to investors remains paramount, the new rule, applying only to registered investment advisers or those required to be registered, gives investment advisers certain latitude in preparing their marketing materials.
The attached client alert provides details on the new rules adopted by the SEC.
Contacts
- Brian R. Forman Partner & Chair, Investment Funds and Advisers
- bforman@morrisoncohen.com
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