SEC Final Rule on Modernized Marketing for Investment Advisers
On December 22, 2020, the Securities and Exchange Commission (SEC) passed a final rule to modernize marketing under the Investment Advisers Act of 1940, as amended. The amendments create a single rule that replaces the current advertising and cash solicitation rules, Rule 206(4)-1 and Rule 206(4)-3, respectively. The staff of the Division of Investment Management also expects to withdraw no-action letters and other guidance that previously applied to the advertising and cash solicitation rules. Additionally, the SEC has made related amendments to Form ADV, the investment adviser registration form, and Rule 204-2, the books and records rule, to reflect the new rule. The revised Rule 206(4)-1 generally: (1) codifies the previous guidance that prohibits untrue statements of material facts, omitting material facts, misleading statements, and any presentations that could be misleading; (2) will now allow for the use of testim