Tag Archives: asset management
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.
What’s Driving Asset Managers to Automate Pitchbooks?
Why automate pitchbooks? Asset Managers recognize automating the marketing and sales process is required in order to be efficient, compliant, and competitive. The manual process of updating pitchbooks and distributing them to the sales force is an antiquated process. It doesn’t adequately serve salespeople or their clients and prospects. There are four main drivers influencing asset managers to automate this process: (more…)
