The SEC’s Amended Marketing Rule Part 1: What Advisers in the Alternatives Space Need to Know – Advertising
On November 4, 2022, comprehensive amendments to the advertising and solicitation rules under the Investment Advisers Act of 1940 will go into effect. These amendments will have a significant impact on investment adviser marketing and solicitor relationships. In the first part of a two-part series, Michael Koffler and Issa Hanna, partners at Eversheds Sutherland (US) LLP, examined the impact of the amendments on “traditional” advertising by investment advisers.
- The scope of the new rule
- The rule’s general content standards
- Requirements around the use of performance presentations, including hypothetical performance
- Practical implementation issues advisers have faced as they have started to gear up for compliance with the rule
- Issues of special importance to advisers providing advice with respect to alternative investments
Issa HannaPartner, Eversheds Sutherland (US) LLP
Issa Hanna assists broker-dealers, investment advisers, investment funds, insurance companies and insurance distributors in navigating the regulatory requirements applicable to their businesses. Issa’s experience includes guiding clients through registration and compliance issues and representing them before federal and state regulators and self-regulatory organizations. He also has deep experience counseling and advising clients on the evolving standards of conduct in the financial services space, and closely follows developments relating to SEC Regulation Best Interest, the investment adviser fiduciary duty, and state securities and insurance laws imposing standards of conduct on broker-dealers, investment advisers and insurance distributors. Issa frequently helps clients develop, revise and update policies and procedures, distribution and service agreements and disclosures to reflect the impact of new rules, regulations and interpretations. He also counsels clients through regulatory issues arising out of transactions they engage in, such as obtaining regulatory approvals of transactions, obtaining end-client consents, and assessing the regulatory risks associated with proposed transactions. In addition to his client work, Issa is actively involved in the firm’s Pro Bono, Diversity and Professional Development Committees. He is also a frequent speaker with respect to current regulatory issues and has been published in a number of industry publications and treatises.
Michael KofflerPartner, Eversheds Sutherland (US) LLP
Michael Koffler guides investment advisers, broker-dealers and investment funds in their compliance with federal and state securities laws and regulations, and SRO rules. Michael advises clients on the full spectrum of business operations, including advertising, portfolio management, trading, internal controls, compliance programs, mergers and acquisitions and other management issues. He also counsels other financial institutions—banks and insurance companies—on securities issues associated with the management and distribution of investment products.