Published on Feb 25th, 2022 |

Marketing Rule Industry Results

Thank you to everyone that took the time to fill out our Marketing Rule Survey!

Below are Key Takeaways from the Results we collected:

  1. 72% of survey respondents have begun updating or implementing their policies and procedures towards the new Marketing Rule.
    • Those that answered no stated that they are still reviewing the Rule or have a limited amount of Marketing and Advertising.
    • If you do a lot of Marketing and Advertising, Vigilant recommends that you begin starting this process now to stay ahead whether that is done in-house or utilizing Outsourced Compliance for assistance.
  2. For those that answered yes to the first takeaway above, 63% of respondents are utilizing Compliance to assist them.
  3. Performance is a top priority (72.7%) that people throughout the industry would like to see more SEC guidance on.
    • Testimonials and Endorsements (45.5%) was the next focus the industry wants more guidance on.
  4. Interpreting Fair and Balanced (45.5%) was deemed to be the most challenging to ensure Compliance with.
  5. Hypothetical Performance and Related Performance/Related Portfolios were leaders for new performance requirements that will have the greatest impact on the way you Create, Present, or Review Performance Information.
  6. The Rule will take more than 6 months to transition to Compliance for 45% of the respondents.
    • Vigilant tends to align closer to 3-6 months pending on the volume of Marketing and Advertising materials.

We also received the following comments from our respondents below.

  • The Rule is difficult to interpret for Fintech RIA Firms.
  • More surveys requested to see what the industry is doing.
  • Trying to determine if carving out performance would be considered hypothetical.
  • Awaiting more guidance on the SEC regarding the new Rule.

Vigilant’s Final Conclusion

It it clear that Performance, Testimonials, and Endorsements are very strong factors when it comes to the new Marketing Rule, and it will be important to stay up to date with future SEC Releases regarding the new Rule.

The Marketing Rule is of the utmost priority for Firms, as it takes effect on November 4th, 2022. Setting aside a budget to focus on the Rule and complying with it is going to be essential for 2022, especially for Firms that have a high volume of Marketing and Advertising.

Vigilant offers Marketing Rule Review Services, where we provide full gap analysis and implementation support to help your Firm comply with the Rule. Are you prepared for these changes that are on the horizon?

Contact us if you have any questions!

Have you seen Vigilant’s webinar on the new SEC Marketing Rule? Click here to watch our full webinar.