Last week we saw the SEC unanimously pass the Advertising Rule for Investment Advisers as well as a rule that governs payments to solicitors. To see the original SEC Announcement regarding the new Rule click HERE.
This Advertising Rule has been in place for nearly 60 years before being updated, and could not have come at a better time to start the new year ahead. With the many changes in technology, and the recent boom in Social Media since that time, this updated rule has imposed principle-based provisions designed to incorporate how technology may evolve.
Vigilant’s COO, Chuck Martin, stated, “The rule will be welcome news for fund shops” on Ignites today (12/29).
Chuck had also provided additional insights regarding the SEC’s decision to scrap a proposed requirement that advisors review ads for compliance purposes before using them. Chuck believes doing so is likely a welcome change. He provided a quote regarding this change, stating, “Advertising materials typically have a number of iterations and include many steps from the creation through dissemination which would add an additional layer of complexity and cost to the process”.
To learn more about the Rule and what it prohibits click HERE to view the full Ignites release, and also see Chuck’s quotes as well.