Confused about which testimonials and endorsements the new SEC marketing rule permits? Get the plain facts here.
Learn about Eric Powell's advice for financial advisers in leveraging compliance technology to grow their business and build trust with clients.
Our last post on the new SEC marketing rule covered some basics, including the newly expanded definition of advertising and the seven general prohibitions that apply to all ads. In this post, we describe key ways technology can be leveraged to implement the new rule. Upcoming posts in this series will examine testimonials and endorsements, presentation of performance results, third-party ratings, record-keeping and Form ADV requirements, review and approval of advertisements, and overall best practices.
We were fortunate to sit down with Eric Powell, founder of RightPlan Financial and the Future Mill, to discuss what registered investment adviser (RIA) firms can do for their clients, what it means to build trust, how to leverage technology to manage compliance, and other fun stuff like what roles firefighters and personal trainers play in the financial services industry.
The new SEC marketing rule calls to mind the Peter Parker principle: "With great power comes great responsibility." (Any Spider-Man fans out there?) The marketing rule consolidates two outdated rules and accounts for updated technology, like social media. It was a long time coming, providing a much-needed update to advertising regulations in place since 1961 and cash solicitation rules in place since 1979. Now, advisers can choose whether to implement the rule on or after the effective date of May 4, 2021, or wait until the compliance date of November 4, 2022. But here's the catch: advisers who act now must comply with the rule in its entirety; that is, no cherry-picking some rule requirements and ignoring others. It’s a big decision, and advisers aren’t taking it lightly.
Think back to when you were a kid. You could take the time to learn new skills. Responsibilities were minimal. Everything seemed possible. Now, time is a valuable commodity. Responsibilities compound. And it often feels impossible to keep up with everything you need to do. For chief compliance officers (CCOs), busy schedules and paperwork pileups can be debilitating. These pitfalls can easily erode the hard work you consistently put into your business.
On March 3rd, the SEC released its examination priorities for 2021. Here’s what they called out:
All states except New York have long had an individual registration requirement for investment adviser representatives (IARs). But that’s about to change.
Written By Yuri Bredle
Managing compliance remotely comes with its own set of challenges; but as with any new task or discipline, it gets easier the more you do it.
By Charles Black
Reality Check is an occasional blog post series we do where we analyze actual SEC enforcement actions or examination experiences and give you a summary of what to expect in the “real world.”
by Lucy Lee
Financial technology or fintech for short is extremely beneficial for businesses due to its widespread utility. It refers to software, algorithms, and applications that are used on desktop and mobile platforms. These are used to manage investments, deposit checks, move money across accounts, and make payments. Without being aware of it, almost all consumers use fintech on a daily basis. However, it also provides many benefits to businesses for back-end and front-end processes. For instance, Bo J. Howell explains how automation has lowered transaction costs for investors, such as zero-fee ETFs, giving some businesses a competitive edge. In addition, it gives investors more options for managing their assets. It is also helping business in many other ways:
by John Williams
Director of Compliance Services at Joot
The Securities & Exchange Commission recently issued a Risk Alert to share some of the observations that the Office of Compliance Inspections & Examinations (OCIE) have seen during the COVID-19 pandemic.