Lessons from the SEC’s first Marketing Rule case.
IAA 1940 Rule 206(4)-1
The model rule would harmonize state-level standards with the SEC’s Marketing Rule.
Both had allegedly failed to adequately consider if it was in their clients' best interest to convert brokerage accounts to advisory ones.
The SEC accused the asset manager of being misleading in its statements and marketing regarding "ESG-integrated" assets.
Investment adviser failed to mention endorsements from high-profile sports stars were paid for.
The sweep sent a warning to IA firms about the importance of accuracy in advertising industry awards and touting conflict free advice.
The latest SEC Risk Alert details observations of investment adviser compliance with the Marketing Rule from its exams staff.
The SEC charged five RIAs for Marketing Rule violations, pointing to misleading and improper hypothetical advertising in particular.