Market Regulation

CFA Expresses Support for SEC’s Proposed Changes to Investment Adviser Advertising and Solicitation Rules

In a letter to the Securities and Exchange Commission (SEC), CFA expressed support for the agency’s proposed changes to the advertising and solicitation rules under the Investment Advisers Act. Changes to these rules are long overdue. In particular, the current advertising rule, which was originally adopted almost 60 years ago, does not properly reflect the modern marketplace, nor does it serve investors or investment advisers well. The solicitation rule, which was originally adopted more than 40 years ago, would also benefit from being updated to better reflect the modern market.

The letter commends the SEC for proposing a thoughtful and modernized framework that responds to and reflects the changes that have occurred during the past 60 and 40 years, respectively. With relatively modest changes, discussed in the letter, the SEC can finalize a set of rules that CFA enthusiastically supports.