SEC PENALIZES FIVE INVESTMENT ADVISORY FIRMS FOR VIOLATING PROVISIONS OF THE SEC MARKETING RULE
Here's an interesting release from the SEC on penalizing five investment advisory firms for violations of the Marketing Rule. All five investment advisers published hypotheticals on their websites " without adopting and implementing policies and procedures reasonably designed to ensure that the hypothetical performance was relevant to the likely financial situation and investment objectives of each advertisements intended audience, as required by the Marketing Rule. " One advisory firm was also penalized for " including false and misleading statements in advertisements, advertising misleading model performance, being unable to substantiate performance shown in its advertisements, and failing to enter into written agreements with people it compensated for endorsements. " FOR IMMEDIATE RELEASE 2024-46 Washington D.C., April 12, 2024 — The Securities and Exchange Commission today announced settled charges against five registered investment advisers for Marketing R