As communication channels and marketing strategies evolved in recent years, the Securities and Exchange Commission responded with amendments to its long-unaltered advertising rules. More than two years later, financial advisors are still facing compliance headaches but slowly adopting changes to their advertising practices.
The SEC in 2020 proposed modernizing its marketing rule for investment advisors, including expanding the definition of advertisement to include communications traditionally covered by the advertising rule as well as any endorsements or testimonials previously covered by the cash-solicitation rule.
Marketing and compliance teams have consistently worked closely with one another at Prime Capital Financial, according to its chief marketing officer, Terra McBride. With the announcement of the marketing rule, both teams worked together to make sure their advisors were aware of the changes and how their advertising would be impacted as a result.
Want to read the full article? Check it out here.
