5 Action Items for Investment Advisors around the SEC Marketing Rule

The Securities and Exchange Commission released its final version of the modernized Marketing Rule, Rule 206(4)-1 and Rule 206(4)-3, under the Investment Advisors Act on December 22, 2020. The major points covered by the modernized rules include:

  • Defining Advertisement
  • Describing General Prohibitions
  • Discussing Testimonials and Endorsements
  • Third-Party Ratings Requirements
  • Performance Information
  • Form ADV Amendments
  • Books and Records Requirements
  • Withdrawal of Prior Staff Guidance

Within your Registered Investment Advisor, the Sales, Marketing, Legal, Risk and Compliance teams should get together to review and understand the requirements of the Rule Release. You can use a consultant to help expedite this process or invest your time internally, but be sure to:

  1. Assemble the team and create awareness.
  2. Create a project plan with ownership of tasks and communication.
  3. Review your ADV, risk assessment, policies, procedures, testing workflows and record keeping systems.
  4. Document and approve proposed changes.
  5. Review all of your existing marketing content and amend or retire materials that don’t meet the new standard.

The updated Marketing Rule is very complex. Oyster’s experts understand its requirements and will assist with updating your procedures, filings, agreements and disclosures.  Our consultants will review your marketing policies and procedures to ensure that they comply with the new requirements.

Having the right compliance technology in place can help you keep track of your marketing pre-approvals.  Oyster Solutions compliance software ensures through automated workflows that Marketing approvals don’t fall through the cracks.  Save time and frustration by using Oyster Solutions to keep tasks on track and your teams working together smoothly and efficiently. 

About The Author
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Buddy Doyle

As the CEO of Oyster Consulting, Buddy Doyle has led the charge to create a successful organization built on the belief that transforming experienced industry practitioners into consultants adds more value to our clients.