Advertising

Past performance is a powerful tool in advertising. It draws in new investors, helps new client acquisition and adds gloss to your firms reputation.

Just because some prospective investors lack sophistication doesnt mean advisers will be successful in fraudulently enticing them. Its more likely that the SEC will answer that siren call.

Expect to hear increasing noise in the months ahead about ways you can now call attention to your firm by linking to client reviews on independent web sites in the wake of the SEC staffs March guidance (ACA Insight 4/7/14) on testimonials and social media.

A false claim is a false claim, wherever it is published.

Check your fund names. If you find the words “protected” or “guaranteed,” consider changing or removing them. SEC staff believes these words may mislead investors. “The staff has recently heightened its scrutiny of fund names suggesting safety or protection from loss and has determined to object to names that may create an impression of protection […]

The SEC this week re-opened the comment period on the proposed amendments to Reg D, Form D and Rule 156. More than 480 comments are in so far, including from industry associations that are less than happy with some of the specific proposed amendments. The immediate net effect of the extended comment period is that […]

Firms managing hedge funds and other private funds: Prepare for questions about marketing and conflicts of interest. SEC examiners are likely to drill down on those subjects during presence exams.So said SEC Office of Compliance Inspections and Examinations director Drew Bowden at the IA Compliance Fall 2013 conference in Philadelphia September 23. Bowden provided a […]

What the SEC allows, the SEC staff polices.Expect examiners from the agency’s Office of Compliance Inspections and Examinations to start asking questions about your marketing efforts if your firm publicly advertises its private funds under the new 506(c) Rule. Those questions will likely focus on the accuracy of marketing materials, as well as on the […]

It may be a good idea for your firm to revisit Regulation S-AM, the rule adopted by the SEC prohibiting firms from using consumer eligibility information obtained by affiliates. It's not that the rule has changed, but your circumstances may have.

You cant say the money is going to one place when it is actually going to another.That lesson was driven home in two recent SEC settlements involving participants in an alleged scheme that funneled $5.6 million from 74 investors to the parent company of an investment advisory firm and a broker-dealer. You simply cannot provide […]