SEC Exam Division Urges Advisers to Prepare for Compliance Reviews on the Marketing Rule

The SEC Division of Examinations advised SEC-registered investment advisers to expect upcoming exams to cover specific areas under the new Advisers Act Rule 206(4)-1 ("Investment Adviser Marketing") (See previous coverage.)

In the Risk Alert, the Division reminded advisers that the compliance date for the Marketing Rule is November 4, 2022.

The Division stated that its compliance exams will focus on (i) Marketing Rule policies and procedures, (ii) compliance with the substantiation requirement, which requires advisers to "have a reasonable basis for believing they will be able to substantiate material statements of fact in advertisements[,]" (iii) performance advertising and related compliance requirements and (iv) maintenance of books and records, including compliance with the amended Form ADV requirements.

The Division encouraged advisers to update their marketing and advertising policies and implement any appropriate modifications necessary to achieve compliance with the Marketing Rule.