Expect very little leeway during marketing rule exams (Financial Advisor IQ)

Firms should prepare for an SEC that will take a hard look at their policies and practices for compliance with the newly effective Marketing Rule. Amy Lynch, FrontLine’s Founder and President, does not expect SEC targeted exams now being rolled out to give firms a lot of wiggle room to get their materials and policies in order. In the lead comments, Ms. Lynch also states that the SEC will most likely accumulate its findings from the exams before issuing any additional alerts or guidance, which could take as long as six months to a year. While many firms are still grappling with the Rule’s requirements, such as on the use of testimonials and hypothetical performance, the SEC’s perspective is that firms have had ample time to sort it all out. See Financial Advisor IQ, “Marketing Rule Compliance Kicks In, Questions Linger“