SEC Proposes Amendments to Investment Advisor Advertising Rules and Compensation for Solicitations

The Securities and Exchange Commission (SEC) has published in today’s Federal Register proposed amendments to rules that prohibit certain investment adviser advertisements and payments to solicitors. These proposed amendments are intended to “reflect market developments since the rule’s adoption in 1961.” The SEC is also proposing amendments to Form ADV that are “designed to provide the Commission with additional information regarding advisers’ advertising practices.”

Finally, the SEC is proposing conforming amendments to the “books and records” rule, to align it with the proposed amending of the advertising and solicitation rules. Public comments will be accepted by the SEC on or before February 10, 2020.