The SEC Marketing Rule and a New Administration | Will Clark Insights
Vigilant Insights
Introduction
With a new administration entering the White House in 2025, some are speculating that the regulatory climate the industry has faced for the past four years may lessen in its intensity. However, while the current priorities of the SEC may be overhauled, one should expect that violations harming investors will face enforcement.
The Marketing Rule, with its obvious role in investor protection, will likely be one example of regulation that continues in the new administration.
In a recent FundFire article, Vigilant Director, Will Clark, CIPM, MBA, discussed his expectations on what may change in 2025.
Will Clark Insights
A major critique of the current SEC involves accusations of regulating by enforcement.
Members of the industry lament that questions around certain elements of the Marketing Rule go unclarified.
Will mentions that most of our education around the Marketing Rule has come from enforcements. He says that while enforcement actions may decrease overall, it remains to be seen if the SEC will change its attitude towards providing education and guidance.
Will does expect the Marketing Rule to continue as a major focus area for the SEC.
Vigilant’s Conclusion
It is important for Firms to strengthen their compliance programs and ensure that they can handle SEC examinations.
While adjustments always occur when there is a change of leadership, proactive compliance departments do not decrease their commitment to compliance. Unsuccessful predictions about what the SEC will do may incur costly punishments.
Vigilant continues to monitor the changing compliance climate while allowing clients to focus more on their business goals and initiatives.
Reach out to us today with any questions you may have or if you are in need of support.