SEC IA Ad Rule

Marketing rule sweep nets nine IAs

The dissemination of ads that included "untrue or unsubstantiated" claims and testimonials, endorsements, or third-party rankings lacking required disclosures were among violations

Untrue ad nails adviser for $150k

The firm advertised that it was rated a 'Top 12 Financial Advisor' by Barron’s when it actually was rated a 'Top 1200 Financial Advisor' by the publisher

Contradiction between ads and ADV disclosures costs adviser

The firm has recognized and disclosed various conflicts so it lacked a reasonable basis for believing it would be able to substantiate an ad that it was 'free from conflicts of interest' and can 'deliver an unbiased, conflict-free . . . level of service to our clients'

Web ads by adviser claiming no conflicts results in SEC fine

The ad claimed the firm 'provides clients with conflict-free advice' while the firm lacked a reasonable basis for believing it would be able to substantiate that statement

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A new SEC investment adviser advertising rule is now in place. The new rule opens the gates to a wider use of social media by advisers, permits the use of testimonials and endorsements, sets requirements around disclosures and establishes standards when using performance or hypothetical advertising, among other changes. The new rule affects private fund advisers as well. This editorial tent-pole collects in one place all that you’ll need to comply with the new rule.

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