Wed, May 27, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

SEC pitches huge advertising and cash solicitation rules overhaul

Thursday, November 07, 2019

Laxman Pai, Opalesque Asia:

The U.S. Securities and Exchange Commission (SEC) voted to propose a set of amendments meant to modernize the advertising rules and restrictions applying to advisers under the Investment Advisers Act.

According to SEC Chair Jay Clayton, the proposed amendments are intended to update the advertising rules to reflect changes in technology, the expectations of investors seeking advisory services, and the evolution of industry practices.

The first rule, which relates to advertisements and would replace a rule adopted in 1961 that has not substantively changed since, would "replace broadly drawn limitations with principles-based provisions," according to an SEC statement.

It would include general prohibitions of some advertising practices with "more tailored restrictions and requirements that are reasonably designed to prevent fraud." The approach allows for the use of testimonials, endorsements, and third-party ratings, as well as "the presentation of performance with tailored requirements based on an advertisement's intended audience."

"The advertising and solicitation rules provide important protections when advisers seek to attract clients and investors, yet neither rule has changed significantly since its adoption several decades ago," said Clayton. "The reforms we have proposed today are designed to address market developments and to improve the quality of information available to investors, enabling them to make more informed choi......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Tiger Global tops the list US-based venture capital market[more]

    Laxman Pai, Opalesque Asia: Tiger Global Management holds on to its position as market-leader in US-based venture capital, said a study. According to Preqin, the closure of tech-focused Tiger Global Private Investment Partners XII in January means the New York-based firm has raised more than

  2. Tech: Fintech startup Brex closes $150m in pure venture funding amid recession[more]

    From Business Insider: Brex, the 3-year-old fintech unicorn, raised an additional $150 million in equity funding from existing investors and Lone Pine Capital, the company announced Tuesday. The cash infusion raised the startup's valuation to "around the $3 billion mark," cofounder and co-CEO Henriq

  3. PE/VC: Venture debt set to take prominent role, Building out Goldman Sachs's private-equity business[more]

    Venture debt set to take prominent role From PE News: Venture debt financing could be having its moment as the equity market becomes less friendly to start-ups. About $10bn worth of venture debt deals were made this year as of 21 April, a pace set to eclipse the roughly $25bn in such de

  4. Study: Emerging market bond issuers take hit as global recession deepens, The coronavirus pandemic could cost the global economy a nightmarish $82tn over 5 years, a Cambridge study warns[more]

    Emerging market bond issuers take hit as global recession deepens Increasing credit stress evident amongst many high-yield EM non-financial corporates as coronavirus disruption takes its toll, says Moody's. 74 out of 106 rated EM sovereigns have a stable outlook as of 30 April 2020 (compa

  5. Investing: Singer bets on Europe, emerging markets, Britain's unhealthy appetite for financial risk in essential services, How Stan Druckenmiller shook up his portfolio[more]

    Singer bets on Europe, emerging markets From Investment Magazine: William Blair's Brian Singer is looking to invest in Europe and the emerging markets as the recovery from the global economic shutdown to contain the pandemic will likely take longer than what the market has priced in.