Benjamin G. Lombard, of Reinhart Boerner Van Deuren s.c., has published an article that discusses the implications of amended Rule 206(4)-1 under the Investment Advisers Act of 1940. His article, titled “SEC Overhauls Its Marketing Rules for Registered Investment Advisers,” begins as follows:
On December 22, 2020, the U.S. Securities and Exchange Commission (SEC) adopted amended Rule 206(4)-1 under the Investment Advisers Act of 1940 to replace its existing advertising rule (prior Rule 206(4)-1) and solicitation rule (prior Rule 206(4)-3). The amended rule represents a substantial update of the prior rules to reflect current marketing practices and new technologies. This alert briefly summarizes the most important aspects of the amended rule. All SEC registered investment advisers will need to update their compliance policies and procedures to reflect the amended rule. In order to give advisers time to prepare for the amended rule’s requirements, it does not take effect until 18 months after its effective date (which is 60 days after publication in the Federal Register).
To see the full article, click: “SEC Overhauls Its Marketing Rules for Registered Investment Advisers” by Benjamin G. Lombard.
To download the full opinion, click here: Rule 206(4)-1 under the Investment Advisers Act of 1940.
Posted by Elise Kim, Managing Associate Editor, Wealth Strategies Journal.