Firms should proceed cautiously with testimonials under new rule (InvestmentNews)

Compliance and marketing teams are about to go head-to-head on the SEC’s new Marketing Rule. That’s because the rule now opens the door for greater use of testimonials and endorsements, but it also opens a can of worms for compliance. Commenting for the InvestmentNews cover story, FrontLine’s Founder and President Amy Lynch believes many firms will be slow to embrace testimonials. There’s a broad definition of advertising in the rule that requires fair and balanced marketing and advertising, and Ms. Lynch states that firms would be wise to take a wait and see approach on certain types of advertising. She adds that many firms will want to first see how their peers are successfully navigating the rule requirements, and then steer clear of the types of testimonials and endorsements that get firms into hot water with the SEC. See InvestmentNews, “A marketing conundrum“