Friday, September 15, 2017

Most Frequent Compliance Issues - Advertising Rule

On September 14, 2017 the US Securities Exchange Commission (“SEC”) released a risk alert on the most frequent compliance concerns related to Rule 206(4)-1 (“Advertising Rule”).

The SEC has identified the most common deficiencies related to compliance with the Advertising Rule:
  • Misleading Performance Results
  • Misleading One-on-One Presentations containing “Gross-only” Performance
  • Cherry Picked Profitable Stock Selections
  • Misleading Selection of Recommendations, (a.k.a. Client Testimonials)
  • Compliance Policies and Procedures related to the review and approval of Advertising

For additional details please read the full Risk Alert.

If you have any questions, please contact us at or to your compliance consultant.

AdvisorAssist Team


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