Effective and Compliance Dates Set for SEC Investment Adviser Marketing Rule Amendments

An SEC final rule that amends the advertising and cash solicitation rules, the books and records rule, and Form ADV under the Advisers Act was published in the Federal Register.

As previously covered, existing IAA Rule 206(4)-3 ("Cash payments for client solicitations") will be eliminated and its substance will be merged into an amended and expanded IAA Rule 206(4)-1 ("Advertisements by investment advisers"). Additionally, the SEC amended Form ADV and IAA Rule 204-2 ("Books and records to be maintained by investment advisers") to increase available data to support SEC inspection and enforcement procedures.

The final rule goes into effect May 4, 2021 and provides an 18-month transition period between the effective date and the compliance date.