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Tracking the Performance of the Advisers Act Marketing Rule Since Its Inception

Author: Aaron J. Russ.; Kelley A. Howes.

Source: Volume 58, Number 03, February 1 2025 , pp.25-33(9)

Review of Securities & Commodities Regulation

Abstract:

Over two years have passed since the compliance date for the amendments to Rule 206(4)-1 (the “Marketing Rule” or the “Rule”) adopted by the SEC under the Investment Advisers Act of 1940 (the “Advisers Act”). Since that date, the SEC Staff’s focus on Marketing Rule compliance has been intense. This article summarizes Marketing Rule developments since the November 4, 2022 compliance date, including SEC Staff guidance, risk alerts, examination priorities, and enforcement actions, and discusses related on-going implementation challenges.

Keywords: Rule 206(4)-1 (“Marketing Rule”); Investment Adviser Marketing, Adv. Act Rel. No. IA-5653; Time Period Requirement; Gross and Net Performance; Subscription Lines of Credit; Artificial Intelligence Enforcement Actions; Hypothetical Performance Enf

Affiliations: 1: Morrison & Foerster LLP; 2: Morrison & Foerster LLP.