Volume IV Issue 10 | Legislative Intelligence - Part I: Good Intentions Aside, SEC Rule Changes to Testimonial, Solicitation Rules Likely to Trip Up Some Advisers

Welcome to this edition of the Investments & Wealth Institute Legislative Intelligence. In November the Securities and Exchange Commission (SEC) approved major changes to two longstanding rules in a rulemaking that was warmly received by registered investment adviser (RIA) firms as long overdue, but that may lead to compliance problems for firms that aggressively market their services or ignore it in routine client communications. [Note: Part I of this two-part series focused on changes to the advertising rule that previously prohibited the use of client testimonials by RIAs. Part II will focus on new changes to SEC rules for advertising an advisory firm’s portfolio performance and an overview of the Solicitation Rule.]