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New Ad Rule Ambiguity Could Hinder Use by Advisors

January 11, 2021

The industry had waited decades for an update to the SEC’s advertising rules, but now that it’s here, a lack of clarity regarding some parts of the changes could slow advisors from using the new marketing flexibility, say industry watchers compliance experts.

Foreside’s Craig Moreshead, Managing Director, spoke with Mrinalini Krishna with Financial Advisor IQ and shared that if advisors are “taking aggressive approaches to marketing and marketing hypothetical performance, leveraging testimonials, if they check all those boxes, they certainly should expect to be prioritized by the SEC in terms of exam frequency.”

The use of testimonials could be one particular area where issues of interpretation land FAs in hot water, according to Moreshead.

Click here to learn more about how the use of third-party rankings under the new Rule could be another “tripwire” for advisors.