The SEC Advertising and marketing Rule Sweep Has Begun

In February, The enforcement unit of the Securities and Change Fee’s Boston department commenced Advertising and marketing Rule sweeps, notifying affected corporations to protect and produce data.

It’s crucial that corporations overview their web sites and advertising and marketing practices to make sure that they’re compliant with the brand new Advertising and marketing Rule that grew to become efficient in November 2022, particularly concerning the use or publication of testimonials, hypothetical efficiency displays, and rankings/awards/recognitions.

Additionally it is crucial to overview and replace agency insurance policies and procedures to substantiate that they appropriately tackle the brand new rule.

And be warned: Whereas it doesn’t imply they don’t exist, I’ve but to come across a advertising and marketing marketing consultant that clearly understands the advertising and marketing limitations within the funding advisory business. So don’t depend on them for compliant advertising and marketing supplies.

As lots of you will have heard me profess numerous instances, the usage of puffery and/or statements that may’t be definitively corroborated might show problematic, to not point out the inappropriate use of testimonials. Properly, that day has apparently come. Keep away from utilizing pointless adjectives and/or uncorroborated laudatory/promissory statements; at all times add a modifier like “assist,” “attempt” or “consider.” Additionally keep away from utilizing the phrase “guarantee” or different statements that connote a assure. Watch out of statements touting “battle free” recommendation or companies. 

Though I’ve no empirical proof, I’m assuming that the SEC is utilizing synthetic intelligence to comb via advisory agency web sites. I’m at the moment addressing a number of of those issues with the Boston department.