An SEC proposal to amend the advertising and solicitation rules under the Investment Advisers Act of 1940 (the "Advisers Act") was published in the Federal Register. Comments on the proposal must be submitted by February 10, 2020.
As previously covered, the proposed rule changes would (i) adopt broader definitions of "advertising," "improper behavior" and "solicitor," (ii) impose conditions on the use of hypothetical and performance information in advertisements, (iii) impose additional conditions on the use of solicitors, such that numerous firms may not be eligible to act as solicitors, and (iv) amend certain recordkeeping requirements.
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