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B. G., Opalesque Geneva:

In its recently released Marketing Rule Snapshot Report, US law firm Seward & Kissel finds that the most affected area of advertising for investment advisers is performance communication.

The SEC's adoption of the new Marketing Rule in December 2020 was an important development for SEC-registered investment advisers. To understand the impact, Seward & Kissel surveyed more than 120 investment advisers following the one-year anniversary of the Marketing Rule's November 2022 compliance date.

The survey respondents included advisers to separately managed accounts (SMA advisers) for both institutions and individuals, closed-end funds, specifically private equity and private credit funds, hedge funds, and registered funds (mutual funds).

70% of respondents cited performance advertising as the area of their marketing practices that has been the most affected area of marketing by implementing the Marketing Rule, while 25% cited general communications with clients and prospective clients.

In the area of presentation of performance advertising, the Marketing Rule contains requirements for displaying "gross vs. net" performance, extracted performance, related performance and hypothetical performance (among others), and each area has presented advisers with different compliance challenges - especially within the "gross vs. net" performance area.......................

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