Ask Brad: The Overhyped New Marketing Rule

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

This is the latest installment of a regular column to answer questions from advisors who are considering transitioning to an RIA model. To see Brad’s previous articles, click here. To submit your question, please email Brad here.

Unless you have completely tuned out industry news these past few months, you have heard about the SEC’s updated new “marketing rule.”

In short, the SEC updated decades-old regulations pertaining to a number of investment advisor advertising and client solicitation policies. One of the most thorough write-ups regarding the update I have come across was written by regulatory attorney Richard Chen and can be read here.

The initial hoopla, particularly over the expanded use of client testimonials, has been overdone.

Upon the official announcement of the rule, there was no shortage of articles written, webinars hosted, podcasts made, all to eagerly expand upon all the great new strategies advisors will now have available to them.

Updating guidelines written long before most advisors were even born is good. However, I am not convinced of the earth-shattering change this will bring to our profession. Yes, it’s an improvement…. but worthy of all the excitement it has generated?

Don’t call me a Debbie Downer. It is my pragmatic way to view things.

Let’s start with implementation.