SEC Marketing Rule Risk Alert | Thayne Gould Reacts
Vigilant Insights
Introduction
The SEC has sent out its third risk alert related to the Marketing Rule.
With the most recent enforcement activity occurring this month, the industry is working through the Risk Alert for its implications to their business practices.
Vigilant Director, Thayne Gould, provided his reaction and insights on FundFire focused on this Marketing Rule Risk Alert.
Thayne Gould Reacts
With Marketing Rule Compliance as a top priority for 2024, Thayne commented on how many topics are covered in the risk alert; he mentions that this is the most comprehensive so far.
It is also highlighted by Thayne that failures have been noted in almost every key provision of the Rule. The SEC is clearly intending to be quite detailed, as they reviewed social media sites and individual video recordings.
He acknowledges the challenges Firms face in complying with the Rule, as Firms may struggle to identify which statements will require substantiation. Having the documentation available may present additional recordkeeping challenges.
Vigilant’s Conclusion
As the SEC continues to make Marketing Rule Compliance a top priority, it is vital that Firms dedicate the resources necessary to avoid significant regulatory headaches.
Having knowledgeable professionals reviewing all marketing materials is essential for success.
A streamlined and well-documented approach can both reduce a Firm’s risk and limit negative impacts on the business goals.
For any gap analysis or increased compliance support you may need, reach out to us directly below.