The proposed new rules provide protection for private fund investors by increasing their visibility into certain practices, establishing requirements to address practices that have the potential to lead to investor harm.
On February 9, 2022, the Securities and Exchange Commission the SEC issued proposed rules under the Investment Advisers Act of 1940, as amended Advisers Act, for investment advisers to private funds registered under the Advisers Act.
Monday, March 8, 2021
On December 22, 2020, the SEC adopted amended Rule 206(4)-1 under the Investment Advisers Act of 1940, updating the rules governing investment adviser marketing ( Marketing Rules ). The new Rule replaces the currently separate advertising and cash solicitation rules and will take effect May 4, 2021. Investment advisers subject to the Marketing Rules have 18 months thereafter to bring their marketing practices into compliance.
What does this mean for investment advisers?
All investment advisers required to be registered with the SEC are subject to the Marketing Rules and will need to update their advertising practices and recordkeeping policies. The new rule is lengthy and complex, and advisers should consult with their attorneys to ensure full compliance. The Marketing Rules prohibit several types of marketing practices and regulate the use of testimonials, endorsements, third-party ratings and performance advertising. The full text of the Marketing
Monday, January 25, 2021
On December 22, 2020, the U.S. Securities and Exchange Commission (SEC or Commission) adopted amendments to the rules that govern investment adviser advertisements and compensation to solicitors under the Investment Advisers Act of 1940. This is the first significant amendment to those rules in over 40 years. These changes were made in response to evolving technology and investor expectations.
The new marketing rule applies to all investment advisers registered, or required to be registered, with the SEC. While the new rule reflects what the SEC views as the current best practices in marketing, it may cause practice changes for many advisers.
Tuesday, January 12, 2021
On December 22, 2020, the U.S. Securities and Exchange Commission adopted amendments to the rules under the Investment Advisers Act of 1940 relating to advertisements. A copy of the adopting release is available here. This alert is to provide you with a high-level overview of the amendments and the new rule. Firms will have roughly 18 months to get into compliance with the new rules and we will be available to assist them with (i) updating their policies and procedures to comply with the new marketing rules, (ii) reviewing any collateral advertisements, (iii) assisting them with reviewing their solicitation arrangements, and (iv) addressing any questions they may have relating to testimonials, endorsements, third-party ratings, recordkeeping, or their Form ADV.