With the SEC’s proposed changes to its advertising and cash solicitation rules, the regulator is seeking to modernize these rules for today’s communication methods. FrontLine’s Founder and President Amy Lynch states that for instance, under the current rules, many investment advisers are restricted and essentially prohibited from effectively using social media for promoting their business and soliciting new clients. By proposing to amend the rule to cover the use of social media, Ms. Lynch comments that the SEC appears to be moving toward clarifying certain rule ambiguities and providing much needed details on how firms can appropriately advertise and solicit business in today’s world. See IGNITES (subscription required), “SEC to Propose Updates to 1960s-Era Advertising Rules”
