Advertising and New SEC Marketing Rule Implementation

In late 2020, the SEC finalized significant changes to rules and forms governing advertising and cash solicitations under the Investment Advisers Act (“IAA”). On December 22, 2020, the Commission issued the new final rule, which replaces both the prior Advertising Rule and Cash Solicitation Rule with a single, broad, “modernized” marketing rule. The new rule also amends investment adviser registration Form ADV and the books and records rule to reflect the related changes.

The deadline for mandatory compliance is November 4, 2022. The SEC stated that advisers may choose to comply with the new rule, but only “in its entirety,” at any time after the May 4, 2021 effective date SEC staff has reminded advisers that during this transition they should be reviewing, revising, and preparing to implement compliance procedures and policies to prevent potential violations of the new rule.

Bates Compliance has formed a team to address investment adviser concern and support efforts to conform oversight, recordkeeping and disclosure requirements under the new rule. Our compliance team includes senior compliance staff and former regulators with expertise in the development of policies, procedures, supervisory and compliance processes, and best practices to enhance compliance and supervisory systems. We have also produced additional resources to help clients and firms understand and navigate implementation of the new rule.

Alert - 04/06/23 - SEC Exams Division Issues Risk Alert for Newly Registered Advisers on Compliance Deficiencies and Guidance to Address

Article - 02/21/23 - SEC 2023 Exam Priorities Comparison Chart and Summary

Alert - 10/04/22 - With Nov. 4 Deadline Approaching, SEC Announces New Marketing Rule Exam Initiatives and Areas of Review

Article - 08/02/22 - The SEC Marketing Rule - What You Need to Know

Article - 12/21/21 - The SEC’s New Marketing Rule - Webinar Takeaways

On-Demand Webinar - 09/09/21 - Deconstructing the SEC’s New Marketing (and Solicitor) Rule

Alert - 04/05/21 - Update on New SEC Marketing Rule: It’s All or Nothing

Article - 01/08/21 - SEC Rewrites Rules on Investment Adviser Marketing

For more information on how Bates can support your firm's compliance efforts, please contact us or reach out to a member of our team: