11.04.22

The SEC Marketing Rule Just Kicked In. Are Financial Advisors Ready?

by: Kenneth Corbin

Financial advisors must now comply with the U.S. Securities and Exchange Commission's (SEC) new Marketing Rule, whose complexity is causing considerable consternation. A key change involves guidelines for when advisors can promote firms with client testimonials and endorsements and third-party ratings. One provision is that advisors can include selected performance data provided it is presented in a straightforward manner that delivers meaningful context. When presenting performance data about an investment strategy, the SEC has mandated advisors to contextualize the data and include net performance as well as gross performance.

Read the full article on Barron's