Category Archives: Pitchbooks
The SEC’s New Modern Marketing Rule: Are You Prepared to Comply?
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.
How to Tackle Investment Data Management and Content Automation Initiatives in Tandem
Insights by John Toepfer, CEO and Chris Ruppenstein, Director of Sales at Synthesis Technology
Today, nearly every segment of the economy is seeing an increase in wage pressures and tighter labor markets. As a result, asset management executives are looking to efficiently allocate resources amongst already capacity-constrained teams and business units. This means manual, time-consuming tasks should and must be automated.
Deloitte’s 2022 Investment Management Outlook report showed 45% of survey respondents see operational efficiency as a top driver for digitization. Similarily, Synthesis Technology’s 2021 Asset Management Martech survey also showed operational efficiency as a top driver in terms of Martech stack changes over the next two years (82%). And while most asset management firms have some automation in place, they still are not investing enough in data management solutions. Only 24% of responding firms reported having a data management solution for product data, and even fewer (13%) reported having an integrated product data management and content automation system.
The lack of efficient data processes negatively impacts managers’ efficiency, bottom line, and competitiveness. For example, taking a month after quarter-end to update and distribute marketing and sales materials is costly, puts marketing and sales teams at a disadvantage, and may lead to investors and prospects looking elsewhere.
Managers also face increasing data governance and compliance scrutiny from the due diligence requirements of potential investors and consultants as well as internal stakeholders.
The First Step To An Effective Pitchbook Strategy for Investment Managers
In the world of financial product sales, the quality of your pitchbooks can either make or break you. In order for salespeople to deliver great presentations, it’s important to have an effective pitchbook strategy that runs like a well-oiled machine. If your strategy isn’t refined, you run the risk of sending out sloppy presentations that can damage your brand image, or worse, result in non-compliance.Read More
Pitchbook Problems? 3 Ways Technology Can Help
It’s tough out there for investment management sales teams and only getting more challenging. Today, pitchbooks must be customer-centric, created or changed on a dime, on-brand, compliant and have digital output and tracking options. That’s like trying to make a delicious, vegan, gluten-free, nut-free, and sugar-free wedding cake in 10 minutes.
If that hits home, then this article is for you.
(If you didn’t find that amusing, you’ve clearly never tried to make a cake in 10 minutes.)