Amid Confusion, A Blueprint For The SEC's New Marketing Rule
More than seven months after it took effect, the SEC's new trading rule continues to create hurdles for advisers. The complexities of regulation that companies face for the first time on Nov. 4 were made clear by panelists at the INVEST financial planning conference in New York earlier this month and a recent "risk warning" from the Securities and Exchange Commission. Confirmed. In general, the new marketing law allows the use of testimonials from existing customers and recommendations of third parties such as celebrities . introducing new standards for reporting past investment performance; This forces companies to monitor their ads for false or misleading information. The complexity of the law prompted the Securities and Exchange Commission to issue an earlier risk warning to advisers in March, warning them of potential failures . In the latest warning, the Wall Street watchdog urged firms to remember their obligation to verify all investment performance claims...