In February, The enforcement unit of the Securities and Trade Fee’s Boston department commenced Advertising Rule sweeps, notifying affected corporations to protect and produce information.

It’s crucial that corporations assessment their web sites and advertising and marketing practices to make sure that they’re compliant with the brand new Advertising Rule that turned efficient in November 2022, particularly concerning the use or publication of testimonials, hypothetical efficiency displays, and rankings/awards/recognitions.

It is usually crucial to assessment and replace agency insurance policies and procedures to verify that they appropriately deal with the brand new rule.

And be warned: Whereas it doesn’t imply they don’t exist, I’ve but to come across a advertising and marketing guide that clearly understands the advertising and marketing limitations within the funding advisory business. So don’t depend on them for compliant advertising and marketing supplies.

As lots of you’ve gotten heard me profess numerous occasions, the usage of puffery and/or statements that may’t be definitively corroborated might show problematic, to not point out the inappropriate use of testimonials. Properly, that day has apparently come. Keep away from utilizing pointless adjectives and/or uncorroborated laudatory/promissory statements; all the time add a modifier like “assist,” “try” or “consider.” Additionally keep away from utilizing the phrase “guarantee” or different statements that connote a assure. Watch out of statements touting “battle free” recommendation or providers. 

Though I’ve no empirical proof, I’m assuming that the SEC is utilizing synthetic intelligence to comb by means of advisory agency web sites. I’m at present addressing a couple of of those issues with the Boston department.