5.2.4 SEC Marketing Rules

FINRA FINRA Series 63
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Last, the new SEC marketing rule prohibits a number of remarks related to performance in advertisements. Those prohibitions are:

  • Any statement that the [SEC] has approved or reviewed any calculation or presentation of performance results

What is considered a statement that the SEC has approved or reviewed and why would that be a prohibited remark?

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An example would be “The SEC reviewed our products and approves of their risk & return profile for conservative investors.” Similar to rules in the Uniform Securities Act, it is prohibited to insinuate or suggest a regulator has approved of a product, representative, or anything similar.

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Ah, I (mis)understood it to mean that an adviser cannot use a statement that has actually been approved or reviewed by the SEC.

Thanks for clarifying.

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