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ARTICLE · 11 SEPTEMBER 2024

More Marketing Missteps

K&L Gates
K&L Gates
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K&L Gates

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On 9 September 2024, the Securities and Exchange Commission (SEC) announced settled charges against nine registered investment advisers for violations of Rule 206(4)-1 (the Marketing Rule).

United StatesMedia, Telecoms, IT, Entertainment
Pablo Man
Pablo Man
Pamela A. Grossetti
Pamela A. Grossetti
Lance Dial
Lance Dial
Jennifer L. Klass
Jennifer L. Klass

On 9 September 2024, the Securities and Exchange Commission (SEC) announced settled charges against nine registered investment advisers for violations of Rule 206(4)-1 (the Marketing Rule). Unlike the prior settlements (which focused primarily on the use of hypothetical performance), these settlements focused on other elements of the Marketing Rule: (i) the prohibitions on statements of material fact that are untrue or that the adviser cannot substantiate; (ii) disclosures relating to testimonials and endorsements; and (iii) required disclosures for third-party ratings. Many of these violations were based on website disclosures. In total, nine advisers agreed to pay US$1,240,000 in combined civil penalties, ranging from US$60,000 to US$325,000.

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