The Investment Advisers Association and the CFA Institute American Investment Performance Committee have launched an investigation aimed at evaluating investment advisers' practices in complying with the Securities and Exchange Commission's marketing rules. The regulations, which took effect in November 2022, set strict guidelines for advisers on the presentation of performance data in marketing materials. The survey, which will run through April 1, seeks insight into advisors' compliance with these new regulations, focusing on the use of net revenue, performance intervals, and other key metrics in promotional content.
Understand the impact of marketing rules
Enforcement of the SEC's marketing rules will bring significant changes to the way investment advisors communicate performance data. This regulation aims to ensure transparency and accuracy, prohibiting the use of aggregate performance figures without corresponding net performance data, and providing clear guidelines for using virtual performance to suit viewer objectives. We have set standards. Advisors are now addressing these requirements and aligning their marketing strategies with regulations that emphasize honest and clear communication.
Investigation scope and advisor preparation
The survey asks for detailed information from advisors, including the size of the company and the application of various performance indicators in marketing materials. Participants are encouraged to reflect on how they address net revenue, how they use performance time frames, and the provisions of the rules regarding virtual performances and audience targeting. This effort not only assesses compliance levels across the industry, but also helps identify common challenges and best practices among advisors facing complex marketing rules.
Broader implications for the investment advisory sector
Responses to this survey will provide valuable insight into compliance with the SEC's marketing rules and provide a clearer picture of the impact of these rules on the investment advisory industry. As companies adapt to these regulations, the findings of this study may guide future SEC actions and industry standards, ensuring that marketing practices continue to evolve toward more transparency and investor protection. To do. As deadlines approach, industry attention is focused on understanding and effectively implementing marketing rules.
As the April 1 deadline approaches, investment advisers are being asked to participate in the survey, contributing to a comprehensive picture of how the industry is responding to these significant regulatory changes. are doing. The results of this study may influence future regulatory trends and help shape the standards of marketing practices in the investment advisory field, highlighting the continued evolution toward greater transparency and investor protection. To do.
