Kelley Howes spoke to Citywire about the Securities and Exchange Commission’s Marketing Rule and how it will affect the way advisors promote performance.
According to Kelley, “As an investor I would need to understand how numbers are calculated,” adding that, “If they’re using a back-tested performance number, you have to have disclosure that explains what the inputs are, how they’re evaluated.”
She noted that both recent marketing campaigns and old content that remains on websites will be impacted by the Marketing Rule, which advisors need to comply with by November 4, 2022, and commented, “[Advisors] really need to think about what’s out there. […] Materials must retain all facts and not omit things that are necessary to make them true and complete. That’s really the largest context in which things need to be reviewed, and some advisors may just make the decision to pull old content down.”
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