Investment Advisory firms that are eagerly awaiting the revisions recently adopted by the U.S. Securities and Exchange Commission (SEC) to the archaic Advisers Act Advertising Rule previously anticipated to become effective this spring, will have to wait a bit longer. The Advertising Rule prepared and approved under the former Trump Administration is now required to undergo review by the newly installed Biden Administration.
The U.S. Securities Exchange Commission’s has issued its new modernized Advertising Rule that is intended to replace the existing Advertising and Cash Solicitation Rules. The SEC release relating to the new Advertising Rule is a 430 page behemoth that will create a significant change to the manner in which advisers conduct their advertising and marketing activities.
Advisory firms are encountering more competition than ever when it comes to building their client base. Many firms would make an additional spend on marketing and advertising strategies (including use of solicitors and social media to attract younger clients) but often are concerned about SEC regulatory scrutiny and limitations imposed on registrants.
For those of us who have focused on performance advertising throughout their careers, we have witnessed many amendments to the Advisers Act – but none which have significantly touched upon advertising. During the last quarter century, there have been new … Read More