Marketing rule enforcement underway (ThinkAdvisor)

SEC examinations for Marketing Rule compliance have revealed that many investment advisers have updated their policies and procedures for the new rule, while other exams have discovered serious deficiencies. A large number of exams have resulted in referrals to SEC Enforcement, and according to Amy Lynch, FrontLine’s Founder and President, those firms that have done nothing to comply are at the greatest risk. Speaking at a recent industry compliance seminar, Ms. Lynch stated that firms examined showing no updated policy, no changes to their marketing materials, and doing testimonials and endorsements without the proper disclosures would likely face a SEC enforcement action. She adds that with the rule in its early days, the SEC wants to see that firms have taken a best efforts approach to comply. That type of patience will only last so long once the SEC begins zeroing in on full compliance of all components of the rule. See ThinkAdvisor, “SEC Marketing Rule Enforcement Actions Could Be on Their Way”