Marketing Rule Sweeps | Bernadette Murphy Insights
Vigilant Insights
Brief Introduction
As the SEC continues to announce violations related to the Marketing Rule, Firms are understandably worried about their performance if they are included in an SEC sweep.
In a recent InvestmentNews article, Vigilant Managing Director, Bernadette Murphy, MSL, gave insight into how the SEC conducts its sweeps related to the Marketing Rule.
Bernadette Murphy Insights
Bernadette discusses how the documents requested are pretty straightforward, and “nothing is a surprise”.
Where some SEC examinations can be complex and daunting, Bernadette feels that the list is not unreasonable, and Firms that are “doing what they’re supposed to do” should not be intimidated.
It is vital that Firms have the proper documentation to substantiate any claims made. Supporting documentation, books, and records are “the cornerstone”, Bernadette says.
Some Firms have forgone any use of testimonials due to the SEC regulations, considering that they may not add much value for the scrutiny they bring.
Key Takeaways
- Marketing Rule sweeps have been relatively straightforward.
- Advertisements with the use of performance, testimonials, and/or endorsements typically receive the most attention from regulators.
- Proper recordkeeping is an absolute necessity.
Vigilant’s Conclusion
SEC investigations are less intimidating when Firms have maintained compliance programs that are proactive, detailed, and current with industry standards.
Vigilant offers a range of compliance solutions that can help your Firm maintain compliance with the Marketing Rule. Consider utilizing our marketing review team to handle your advertising review process.
Reach out to us today regarding any concerns you may have.