The SEC Division of Enforcement continues targeted examinations of investment advisor compliance with the Marketing Rule (Rule 206(4)-1), with particular focus on testimonials, performance advertising, and third-party ratings disclosures.
Since the Marketing Rule became mandatory on November 4, 2022, the SEC has conducted risk-based examinations to assess industry adoption and has identified recurring compliance gaps.
Common deficiencies observed by examiners include inadequate substantiation for performance claims, missing disclosures in testimonial advertisements, and failure to update internal compliance procedures to reflect the new rule requirements.
Firms should ensure they have updated their advertising review procedures, maintain substantiation files for all material claims, and have written agreements with promoters (formerly solicitors) as required under the rule.
Investment advisors are encouraged to conduct self-assessments of their marketing materials and internal review procedures to identify and remediate any compliance gaps.