Demystifying the SEC’s Latest Update to the FAQ of The Marketing Rule

The SEC Marketing Rule was put in place to modernize marketing requirements for investment advisors. The latest update to the rule clarifies that the performance of a single investment falls within the definition of extracted performance and is therefore subject to the general prohibition of gross performance for advertisements. As a result of this update, the investment community has faced lingering questions about the complex compliance requirements of the SEC Marketing Rule and how to implement them.

In a recent 60-minute webcast, FactSet, ACA Group, and Dechert, LLP, discussed the definition of extracted performance and how it relates to the concepts of contribution and attribution, the challenges around implementing net returns for single investment groups, the potential solutions for displaying net returns on the single investment and group level, and finally opened the floor for an interactive Q&A session between attendees and the expert panelists.

To learn more, download the full webcast, Demystifying the SEC’s Latest Update to the FAQ of The Marketing Rule.

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