The Latest on the Marketing Rule

Discover how your peers are disclosing information to LPs, planning to show fees and expenses, and calculating net performance. Discussion topics will include:

→ How does your firm conduct compliance-related due diligence on potential vendors?

→ What is the meaning of recent risk alerts, enforcement actions, exam lists?

To help navigate to relevant bits of the session, I’ve added timings to the key takeaways below.

• The rule is “designed to prevent deceptive statements. To establish a violation the SEC only needs to show negligence, broad discretion.” (07:00)
• “You now have to be able to substantiate when the SEC examines you, you need documentation” (11:10)
• “The SEC are asking for particular claims, picking particular claims on websites, and asking for substantiation” (24:06)
• It is critical to demonstrate a good training program that reminds staff what the rules are, as well as running detail past legal and compliance  (47:32)
• “if you change vendors or methodology it can trigger a lot of extra attention especially if it results in a higher valuation… a lot of times they look back in regard to disposition price” (48:53)