RIA Compliance and Practice Management Blog

RIA in a Box’s new SEC Rule Checklist streamlines marketing and advertising compliance

Posted by RIA in a Box

Nov 23, 2022 10:00:00 AM

SEC Rule Checklist

On Nov. 22 2022, RIA in a Box released its new SEC Rule Checklist, created in response to the Securities and Exchange Commission’s (SEC) amended Rule 206(4)-1, under the Advisers Act, which addresses registered investment adviser (RIA) firms marketing their services to clients and investors (The Marketing Rule). The SEC Rule Checklist is accessible to clients through the MyRIACompliance platform, and can be located within the existing Marketing Rule module.

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The SEC’s new Marketing Rule amends Rule 206(4)-1 (The Advertising Rule) and replaces Rule 206(4)-3 (The Solicitation Rule). The new rule, detailed in 430 pages, requires RIA firms to carefully review and update policies, procedures and marketing materials.

As with many regulatory rules, there are compliance complexities to navigate. The new rule allows firms to significantly modify their marketing approach and implement new tactics, such as testimonials and endorsements – but not without the proper checkpoints in place. 

Below, we provide an overview of the new RIA in a Box capability, the SEC Rule Checklist.

Who: The SEC Rule Checklist was designed for firms currently subject to the SEC Marketing Rule.

It's important to note, as of now, this new rule applies to SEC-registered investment advisers, but not state-registered investment advisers. This may change if individual states adopt their own updated advertising rules.

What: RIA in a Box’s new SEC Rule Checklist is a comprehensive questionnaire designed to provide guidance and clarity to firms on the requirements set by the SEC’s new Marketing Rule.

Supervisor users of the MyRIACompliance platform, such as the chief compliance officer (CCO), can use the SEC Rule Checklist during the compliance review and approval process for marketing and advertising materials, including social media and website content. The checklist serves as a guide for firms to assess regulatory risks and red flags, before providing the final stamp of approval to use the proposed marketing and advertising materials with clients or prospective clients.

Each review activity is documented in the firm’s compliance log within the MyRIACompliance platform, and can be easily generated into a printer-friendly report for regulatory examinations and/or compliance reviews.

SEC Rule checklist (1)

When: The SEC’s Marketing Rule was finalized Dec. 22, 2020, and had a compliance deadline effective, Nov. 4, 2022.

Where: The checklist is available through the industry leading MyRIACompliance platform.

As RIA compliance consultants, we highly recommend the CCO and all advisory firm principals review the SEC's finalized marketing rule. Investment adviser regulatory compliance issues related to marketing and advertising are frequent. It’s vital for the CCO to establish and implement the proper policies and procedures to ensure proper compliance.

Interested in learning more about Marketing Review Solutions from RIA in a Box? Request a demo today. 

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RIA in a Box LLC is not a law firm, investment advisory firm, or CPA firm. RIA in a Box LLC does not provide legal advice or opinions to any party or client. You should always consult your relevant regulatory authorities or legal counsel if applicable.

Topics: RIA Operations, RIA Compliance

RIA in a Box LLC is not a law firm, investment advisory firm, or CPA firm. RIA in a Box LLC does not provide legal advice or opinions to any party or client. You should always consult your relevant regulatory authorities or legal counsel if applicable.

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