SERIES 66 CANDIDATES AND REGISTERED BROKER/DEALERS, BE CAUTIOUS ABOUT MAKING STATEMENTS REGARDING THE USE OF A.I. IN MARKETING ADVISORY SERVICES UNLESS ABLE TO BE SUBSTANTIATED
Under the SEC's Marketing Rule , 17 CFR 275.206(4)-1, an investment adviser may not make any statements or promises that in general are false or misleading, or which cannot be substantiated by the adviser. Here are some general prohibitions which the Marketing Rule prohibits: statements that are false and misleading or untrue statements that the adviser cannot substantiate as to the statements' truthfulness statements that may cause wrong implications or inferences in a material fashion statements that fail to include material risks or drawbacks misleading assertions or give investment advice that is unfair or unbalanced charts or tables showing investment results that are misleading or unfair The SEC has recently cited two investment advisory firms that have made unfair and misleading claims about using A.I. in the firms' selection of investments and advisory services. Here is what the SEC said: "According to the SEC’s...