The Securities and Exchange Commissions’ (SEC) Rule 206(4)-1 (Marketing Rule) under the Investment Advisers Act of 1940 has been a long-awaited effort to modernize the rules that govern firms’ ability to advertise to prospective investors. Historically firms would need to comb through a combination of sources from the advertising rule, cash solicitation rules, no-action letters, and industry interpretations to make best efforts on the firm’s marketing.

This new rule combines old and new concepts that will have a direct impact on the way firms present performance in the future and we have included some of the key concepts. Firms that have voluntarily adopted the CFA Institute’s Global Investment Performance Standards (GIPS^®) will similarly find some new concepts that will need to be considered.

In this guide we talk about these changes and how firms can prepare to present performance in line with the new rule and actions they can take now in preparation for the final compliance date set for November 4, 2022. 

Questions?

If you have any questions or would like to discuss your firm’s unique compliance concerns with our team contact us here.