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SEC Pulls Years of No-Action Letters Replaced by Marketing Rule

November 16, 2021

SEC has pulled no-action letters

By Jaqueline Hummel, Managing Director

As promised, the Division of Investment Management is withdrawing and modifying 203 no-action letters on the Advertising and Cash Solicitation Rules, effective November 4, 2022, the date the Marketing Rule (Advisers Act Rule 206(4)-1)  goes live.  The SEC is also withdrawing  Staff Guidance on the Testimonial Rule and Social Media from March 2014

Compliance officers no longer have to hunt through various No-Action Letters to find the appropriate disclosure to comply with the SEC’s Advertising and Cash Solicitation Rules.  Now either the information is contained in the Marketing Rule or the guidance has been withdrawn.  Here are some of the more famous No-Action letters that will be rescinded as of November 4, 2022:

Similarly, No-Action Letters interpreting the Cash Solicitation Rule are also being pulled,  “including no-action letters issued to solicitors who would otherwise be subject to the Cash Solicitation Rule’s disqualification procedures.”

Firms should prepare for the November 4, 2022 deadline by reviewing their policies and procedures to delete references to these No-Action Letters and incorporate the requirements of the Marketing Rule instead.

 

 

This article is not a solicitation of any investment product or service to any person or entity. The content contained in this article is for informational use only and is not intended to be and is not a substitute for professional financial, tax or legal advice.