02.07.23

SEC Emphasizes Probing Marketing Rule, Reg BI Compliance

by: Mark Schoeff Jr.

The U.S. Securities and Exchange Commission (SEC) will place an emphasis on its new marketing rule, Regulation Best Interest (Reg BI), private funds and environmental, social and governance investing in its regulatory examinations this year, according its 2023 Examinations Priorities, released by the agency’s Examinations Division. The marketing regulation, which went into force in November, gives advisors latitude to use client testimonials but also puts in place dozens of requirements for staying in compliance on that and other kinds of advertising. The SEC said it will do more than evaluate advisors’ written policies and procedures to comply with the marketing rule. The SEC also will focus on Reg BI and on investment advisors’ compliance with the fiduciary standard that governs them. The agency will be looking especially at financial professionals who are dually registered as advisors and brokers.

Read the full article on InvestmentNews