Firms struggle with marketing rule’s language (IGNITES)

The SEC’s new marketing rule is posing a challenge for investment adviser firms that must swiftly update their policies and practices with marketing programs already in place. While the rule’s goal was to modernize the SEC’s 60 year-old advertising rule, it’s now leaving many compliance staffs in the dark about how to interpret the new rule’s language and update disclosures. Amy Lynch, FrontLine’s Founder and President, explains that a big hurdle faced by firms is how to apply the rule properly while still meeting marketing goals. Firms are hiring compliance consultants to resolve disputes between their compliance and marketing camps, she notes. Ms. Lynch also sees firms being cautious in a few areas where she expects they will tread lightly at first, including the use of testimonials and endorsements and relying on social media to promote products. See IGNITES (subscription required), “Shops Scramble to Implement Vague Marketing Rule”