03.07.22

SEC Promises Not to Play "Gotcha" in Early Days of New Marketing Rule

by: Mark Schoeff, Jr.

An SEC official said the regulator will not surprise investment advisors with immediate enforcement of a new rule stipulating marketing protocols that goes into effect on November 4. The rule would permit advisory firms to use testimonials, endorsements and third-party ratings for the first time, provided they comply with anti-fraud protections and other regulations. SEC's Daniel Kahl pledged that if there are parts of the marketing rule that advisors have problems understanding, SEC examiners will work with colleagues in the Division of Investment Management to address the difficulties.

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