Questions About The SEC’s Proposed Advertising and Cash Solicitation Reform

8 November 2019       Presenters: Michael S. Caccese, Pamela A. Grossetti, Michael W. McGrath

On Monday, November 4, the SEC announced that it voted to propose amendments to modernize Investment Advisers Act rules addressing advertisements by investment advisers and payments to solicitors. The proposed amendments are intended to update these rules to reflect changes in technology, the expectations of investors seeking advisory services, and the evolution of industry practices. The proposed amendments include, but are not limited to, the following:

  • amendments to the advertising rule to remove the per se prohibitions in the existing rule, include tailored requirements for the presentation of performance results based on the intended audience, and impose new record keeping, review, and approval requirements on investment advisers; and
  • amendments to the solicitation rule to expand the rule's scope and tailor the required disclosures solicitors must provide to investors.

In anticipation of questions from participants regarding the impact of the new rules, lawyers at K&L Gates hosted a conference call where they discussed these changes and fielded questions from participants. 

Questions About The SEC’s Proposed Advertising and Cash Solicitation Reform