02.12.20
SEC Advertising and Solicitation Proposal Still Too Onerous, Says IAA President
by: Tracey Longo
The SEC's new approach to advertising regulations designed to allow advisors to better tell their stories to prospective clients, is an improvement, but is still too onerous to be workable for the industry according to the Investment Adviser Association (IAA). While IAA generally supports the SEC's efforts to modernize the advertising rules, “we are concerned that certain elements of the proposal would impose significant operational and compliance burdens and unduly impede important communications with investors,” IAA President Karen Barr said in a letter to the SEC. Most troubling, Barr said, is the SEC's proposed “far-too broad” definition of advertisement, coupled with a review and pre-approval requirement, which “in our view create the single most concerning aspect of the Commission's proposed Advertising Rule and would significantly undermine much of what the Commission is intending to accomplish.”
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