By Chris Ruppenstein

You’re probably already aware of SEC’s Modern Marketing Rule (Rule 206(4)-1), which replaces previous rules governing advertising by registered investment advisers, including asset managers and private funds.

You may even know these rules are scheduled to go into effect on November 4, 2022.

But does everyone in your firm who is involved in communicating with the public understand the new requirements? And, more importantly, is your firm on track toward meeting these requirements?

If you’re not, you’re not alone. According to Red Oak Compliance Solutions, less than 25% of their clients admit that they’ve fully instituted processes for complying with Rule 206(4)-1.

The good news is that most print and online marketing and advertising materials that asset managers produce already comply with SEC requirements.

However, the SEC’s new rules are designed to close certain loopholes, particularly concerning the way performance information is presented, as well as encompass the reality that messaging platforms like email and social media have become as important as pitchbooks, and web sites in conveying marketing and sales information to clients and prospects.

And, if that wasn’t enough, the SEC will now require asset managers to provide extensive documentation of the processes they used to create, review, approve and distribute advertising materials.

Is there a silver lining here? Perhaps, since the SEC is finally going to allow asset managers to use client testimonials and endorsements in their advertising.

Let’s take a closer look at the key provisions that will create the most work for asset managers—and what they need to do now to comply with the new rules.

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Over the past couple of years, the way we live, work and communicate has been changed forever. The global pandemic left an indelible mark on the asset management landscape that requires new strategies for engaging both clients and employees. So how do asset managers attract and engage financial advisors and grow assets in a more distributed and remote workforce?

This topic was explored at length at the Spring 2022 IMEA conference in Chicago. Some of take-aways from the event are included in our tips below:

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For most asset management firms, data-driven materials like pitchbooks, fund fact sheets, and quarterly commentaries are key business drivers. Yet, those materials are also often the cause of the biggest bottlenecks in the sales and marketing process. That’s why many firms are automating their content production. They know automation means reducing the time it takes to get materials to the sales team and then prospects. In addition, by minimizing the manual effort entailed in creating materials, automation will allow marketing teams to reduce the risk of errors and gain efficiencies that lead to significant long-term cost reductions.

But not all content automation solutions are created equal. If you’ve been contemplating investing in automation, you may be asking: Which solution is the best? The short answer is: the one that removes the most time and risk from your process. Below are some key capabilities to consider when evaluating content automation providers.

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Separately Management Accounts (SMAs) are on a roll. Traditionally designed to target the wealthiest individuals and families, defined benefit plans and endowments, they’ve often been treated as a niche product or a way for managers of mutual funds to manage multimillion-dollar portfolios directly.

But that’s changing. According to research from Cerulli, assets held in SMAs grew by 34% year-over-year from the first quarter of 2020 to the first quarter of 2021 and now command a 16% share of the $9 trillion held in managed accounts. Cerulli’s research also indicated that advisors planned to boost their usage of SMAs by 19% in 2022 while reducing the use of mutual funds by 12%.

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