SEC ups the ante for Marketing Rule compliance (FinancialPlanning)

Expect enforcement actions based on the Marketing Rule to continue to play a major role in the SEC’s aggressive agenda. These cases have already contributed to the nearly $5 billion in penalties and fines recorded by the SEC during its 2023 fiscal year and made public earlier this month. FrontLine Compliance Founder and President Amy Lynch was surprised by how quickly the SEC pursued violations of the Marketing Rule. She comments that the SEC is not providing the typical time frame for firms to ease into compliance requirements for a new rule requiring significant changes and updates. In fact, Ms. Lynch states that the SEC’s exam and enforcement activity is the most aggressive she has seen on a new rule during her twenty-five year compliance career. What has been tripping up firms, she adds, are failures to ensure new marketing policies are carried out to the letter and the lack of training to prevent the use of marketing materials with unsubstantiated claims. See FinancialPlanning, “7 takeaways from SEC’s $5B enforcement year”