Can We Say That Now? Predictions on Marketing and Advertising Amendments

Can we say that now? That’s what attendees at the recent CSS Compliance Conference in Scottsdale, Arizona wanted to find out as they attended a session on the application of marketing and advertising rules to the retail and private fund space. Michael Caccese, Chairman of the Management Committee and Practice Area Leader, Financial Services, K&L Gates LLP was joined by K&L Partner Michael McGrath in a panel moderated by Matt Calabro, Director of Institutional Wealth Services at Compliance Solutions Strategies.

The panel, ranked No. 1 among advertising and marketing panels at the event by a statistically insignificant sample size of this author, discussed what is and is not deemed an advertisement under the Advertising Rules adopted under Advisers Act Rule 206(4)-1, recapped key no-action letter guidance, and detailed many examples of ways to craft disclosure language to comply with the rule’s prohibitions on testimonials, past specific recommendations, and false or misleading statements. Case studies, rankings, and uses of social media were also discussed. Mr. Caccese, and Mr. McGrath delivered a session that was truly “best in class” and a top performer, and expressed their predictions for expected changes by the SEC in the next few months to the advertising rules.

Their predictions: a departure from black and white prohibitions in favor of a principles-based approach, and a bifurcation of the advertising rules as applied to the retail and institutional space.

Although it remains to be seen whether the panel’s stellar performance at the conference in predictions is an indication of future results, attendees were treated to the proven expertise of the panelists, and their willingness to share their industry insights and perspectives was much appreciated. And that is something we will gladly disclose.


Interested in attending our next conference? Our spring 2020 event is set for the Ritz-Carlton Sarasota in sunny Florida. Register now using the discount code CSS2020 for $600 savings!


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CSS frequently publishes blog posts which are written by our team from their observations in the field, at conferences and through experiences with compliance professionals. These posts are designed to further knowledge and share industry best practices. Topics run the gamut, including Form ADV, cybersecurity, MiFID II, position limit monitoring, technology challenges and more. Complete and submit the brief form below to receive notifications when we publish new content.

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