News & Analysis as of

Advertising Securities and Exchange Commission (SEC)

SEC Compliance Consultants, Inc. (SEC³)

Nine Advisers Face $1.24 Million Fallout from SEC’s Marketing Rule Sweep

September 30 is the SEC’s fiscal year-end, so it's no surprise to see an uptick in enforcement cases this month. The latest slew of settlements involved violations of the Marketing Rule (Advisers Act Rule 204(4)-1) for...more

Wiley Rein LLP

Children’s Programming Commercial Limits Violations Result in $3M Fine for Broadcasters

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For one of our authors, their kids’ current favorite treat is a chocolate bar sold by a popular YouTube personality (and philanthropist!). The kids know about this particular chocolate bar because the personality promotes it...more

Foley & Lardner LLP

Don’t Buy The Buzzwords: “AI Washing” Gets Its Reckoning

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Since the release of ChatGPT 3.5 in November 2022, public interest in artificial intelligence (AI) has surged in a classic example of a hype cycle. As with past technological breakthroughs, companies may be tempted to...more

Vedder Price

SEC Settles Enforcement Proceedings Against Adviser for Allegedly Misleading Performance Advertising

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On June 14, 2024, the SEC announced the settlement of administrative proceedings brought against a registered investment adviser for disseminating allegedly misleading performance information of a private fund that it...more

Cozen O'Connor

The State AG Report – 7.18.2024

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Here are curated AG and federal regulatory news stories highlighting key areas in which state and federal regulators’ decisions are having an impact across the US: •Gasoline Trading Firms to Pay $50 Million to Settle...more

SEC Compliance Consultants, Inc. (SEC³)

Regulatory Roundup for June 2024

Private Fund Rules Cancelled, Survey Says Marketing Rule is a Lot of Work and the Intersection of Regulation BI and Investment Adviser’s Fiduciary Duty - Welcome to our June Regulatory Roundup, where we provide you with a...more

Morris, Manning & Martin, LLP

Hedge Fund Pitch Deck is an "Advertisement" under the Advisers Act Marketing Rule

Recently, the SEC settled another administrative proceeding under the Advisers Act's Marketing Rule. This time, the SEC focused on advertisements that a hedge fund sponsor made to prospective investors. The hedge fund's...more

ArentFox Schiff

New SEC Guidance on Marketing Rule: Ensuring Compliance in Advertisement and Marketing Material for Investment Advisors 2024

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The US Securities and Exchange Commission (SEC) recently released two new sources of guidance for the Marketing Rule. On February 26, the SEC Division of Investment Management released an FAQ clarifying how to include gross...more

Proskauer Rose LLP

Proskauer's Hedge Start: What Key Exemptions Apply to Hedge Funds?

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We have separately discussed the common exemptions from registration of a fund manager with the Securities and Exchange Commission (SEC) as an investment adviser and from registration with the Commodity Future Trading...more

SEC Compliance Consultants, Inc. (SEC³)

SEC Tells Advisers What Not to Do in Advertisements

SEC’s Division of Examinations (“EXAMS”) issued a risk alert on its Initial Observations Regarding Advisers Act Marketing Rule Compliance (the “Risk Alert”), giving compliance officers an unexpected gift by sharing examples...more

Vedder Price

SEC Settles Enforcement Proceedings Against Five Advisers for Alleged Marketing Rule Violations

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On April 12, 2024, the SEC announced the settlement of administrative proceedings brought against five registered investment advisers for alleged violations of Rule 206(4)-1 under the Investment Advisers Act of 1940, known as...more

Kramer Levin Naftalis & Frankel LLP

SEC Issues Risk Alert Regarding Compliance with Rule 206(4)-1, the Marketing Rule

On April 17, 2024, the Securities and Exchange Commission’s (SEC) Division of Examination (Division) issued a Risk Alert to provide information about investment advisers’ compliance with amended Rule 206(4)-1 (Marketing Rule)...more

Royer Cooper Cohen Braunfeld LLC

The New Marketing Rule: Notes from the Field

On April 17th, the SEC issued a Risk Alert titled “Initial Observations Regarding Advisers Act Marketing Rule Compliance.” Perusing the list of failures, a sense of familiarity arose, given that one of our clients had been...more

Lowenstein Sandler LLP

SEC Finds Advisers' Compliance with Marketing Rule Still Lacking Despite Examination and Enforcement Focus

Rule 206(4)-1, as amended (the Marketing Rule), continues to be an area of focus for the U.S. Securities and Exchange Commission (SEC). On April 17, 2024, the SEC Division of Examinations (Division) published a risk alert...more

Dorsey & Whitney LLP

SEC Settles with Five Investment Advisers for Marketing Rule Violations

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The SEC recently settled charges against five registered investment advisers for violations of the marketing rule (“Marketing Rule”) under the Investment Advisers Act of 1940 (“Advisers Act”)....more

BCLP

SEC Risk Alert on Compliance with the Marketing Rule-Examination Observations

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On April 17, 2024, the Division of Examinations (the “Division”) of the Securities and Exchange Commission (the “SEC”) published a Risk Alert entitled: “Initial Observations Regarding Advisers Act Marketing Rule Compliance”...more

Seward & Kissel LLP

SEC Staff Updates Marketing Rule FAQs

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Who may be interested: Registered Investment Advisers - Quick Take: The staff of the Division of Investment Management of the SEC recently updated its Frequently Asked Questions (FAQ) relating to compliance with Rule...more

Davis Wright Tremaine LLP

So You Want to Advertise Your ESG Efforts? Let's Talk.

Your company has an ESG (Environmental, Social, and Governance) mission. It could be as (seemingly) simple as using renewable energy in production, sourcing eco-friendly materials or, more broadly, coming up with a "more...more

Oberheiden P.C.

Promoters, Endorsers, and Brokers: Understanding the Rules on Securities and Cryptocurrency Investment Advertising

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Promoting securities, cryptocurrency, and other investment opportunities is fraught with legal risks. Individuals who engage in promotional activities must ensure that they have a clear understanding of the federal laws and...more

Katten Muchin Rosenman LLP

FINRA Acts to Update its Advertising Rule

The Financial Industry Regulatory Authority filed a proposed rule change with the Securities and Exchange Commission on November 3, 2023, to amend FINRA Rule 2210. This amendment would allow a broker-dealer to project...more

Carlton Fields

Tailored Specifically: Recent SEC Regulatory Developments Relating To Advertising

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I. INTRODUCTION AND OVERVIEW - Gary Gensler’s tenure-to-date as Chairman of the Securities and Exchange Commission (“SEC”) is striking for its exceptionally active rulemaking agenda. Two rulemakings of tremendous import to...more

Morrison & Foerster LLP

Private Fund Advisers: Presenting Track Record and Other Performance Information Under the Marketing Rule

Private fund advisers that are registered with the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940 (the “Advisers Act”) are subject to certain rules governing their use of investment track...more

Morrison & Foerster LLP

Private Fund Advisers’ Presentation of Track Records

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Investment advisers that are registered with the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940 (the “Advisers Act”) are subject to certain substantive requirements, including Rule 206(4)-1...more

Vedder Price

SEC Settles Enforcement Proceedings Against Nine Advisers for Alleged Marketing Rule Violations

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On September 11, 2023, the SEC announced the settlement of administrative proceedings brought against nine registered investment advisers for disseminating hypothetical performance returns on their public websites without...more

BCLP

SEC Enforcement Sweep Regarding Hypothetical Performance

BCLP on

On September 11, 2023 the U.S. Securities and Exchange Commission (the “SEC”) announced charges against nine registered investment advisers for advertising hypothetical performance to the general public on their websites...more

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