Regulatory Outlook | 03.31.21
SEC Warns Advisors on Ad Rule Compliance
The SEC's Division of Investment Management (IM) has released guidance on when advisors should start complying with the new Investment Advisor Marketing rule. In a recent FAQ, the SEC fielded a question on whether advisors can comply with “some of the marketing rule requirements” before the Nov. 4, 2022 compliance date, which is 18 months after the rule’s effective date, “but not comply with others.” The SEC responded: “No. An advisor may choose to comply with the amended marketing rule in its entirety any time starting on the effective date, May 4, 2021. Until an advisor transitions to the amended marketing rule, the advisor would continue to comply with the previous advertising and cash solicitation rules and look to the staff’s positions under those rules.” SEC staff, the IM division said, “believes an advisor may not cease complying with the previous advertising rule and instead comply with the amended marketing rule but still rely on the previous cash solicitation rule.”
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