Performance Advertising Disclosures and Compliance Marketing Reviews

The Investment Advisers Act contains a broad proscription against "any… practice… which operates…as a fraud or deceit upon any client or prospective client." This language has provided little guidance for investment advisors throughout the United States for more than 70 years. Firms often only learn what is permissible through specific responses made in no-action letters or through the regulatory exam process. This clearly makes compliance more difficult and complex.

At Jacko Law Group, PC (JLG), we have spent years developing a thorough understanding of performance advertising regulations. We help firms understand the "dos and don'ts" of performance advertising and/or marketing and provide disclosures based on regulatory guidance best practices.

Securities attorney and managing partner, Michelle L. Jacko is nationally recognized in the area of performance advertising compliance. She gives frequent lectures on performance advertising and stays current on advertising and marketing policy changes.

JLG reviews client newsletters and firm advertisements to ensure their compliance under the following advertising rules and restrictions:

• Investment Advisers Act of 1940
• Rule 206(4)-1 (SEC advertising rule)
• No-action letters
• Financial Industry Regulatory Authority (FINRA) broker-dealer regulations
• Global Investment Performance Standards (GIPS®)

We also help firms develop internal controls to ensure compliance when they are awaiting or have received a no-action letter or other response from the SEC.

Compliance Through Disclosure

The SEC has investigated investment firms for:

• Not disclosing enough information in client communications relating to investments
• Not providing fair and balanced presentations
• Failure to show performance returns to retail investors
• Failure to present annualized returns
• Not complying with the past specific recommendation rule
• Showing hypothetical data without sufficient disclosures
• And more

JLG's professionals have years of experience in the performance advertising and marketing areas and are ready to help.

To learn more about performance advertising regulations from an experienced securities lawyer, call our law office directly at 619-298-2880 or contact us online.