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Dear Members and Friends,

On November 4, 2019, the SEC proposed . The proposed amendments would replace the current advertising rule’s broadly drawn limitations with principles-based provisions and expand the solicitation rule to cover arrangements involving all forms of compensation, rather than only cash, subject to a new de minimis threshold.

Today, the IPA submitted a commenting on the SEC’s proposal.

  • The IPA commended the Commission for proposing to update its rules to reflect technology advancements, investor expectations, and current industry practices. The advertising and solicitation rules have not been updated comprehensively since 1961 and 1979. The IPA also supported the SEC’s principles-based approach and its exclusion of BDCs from the new definition of “advertisement.”
  • We encouraged the Commission to coordinate new advertising reforms with FINRA to ensure that broker-dealer advertising is consistent with the Commission’s treatment of such reforms for registered investment advisers. We believe uniformity of treatment would also provide enhanced investor protection.

The IPA looks forward to discussing the intersection of broker-dealer and investment adviser advertising with the Commission in more detail along with other IPA priorities as this rule proposal moves forward.


Anya Coverman
SVP, Government Affairs and General Counsel
Institute for Portfolio Alternatives