{"id":18389,"date":"2026-01-03T12:55:10","date_gmt":"2026-01-03T12:55:10","guid":{"rendered":"https:\/\/lite14.net\/blog\/?p=18389"},"modified":"2026-01-03T12:55:10","modified_gmt":"2026-01-03T12:55:10","slug":"sec-releases-new-compliance-observations-on-the-marketing-rule","status":"publish","type":"post","link":"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/","title":{"rendered":"SEC Releases New Compliance Observations on the Marketing Rule"},"content":{"rendered":"<ul>\n<li><\/li>\n<\/ul>\n<hr \/>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#What_Was_Issued_%E2%80%94_A_New_SEC_Risk_Alert\" >What Was Issued \u2014 A New SEC Risk Alert<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#1_Key_Areas_Covered_in_the_Observations\" >1. Key Areas Covered in the Observations<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Testimonials_and_Endorsements\" >Testimonials and Endorsements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#2_Third%E2%80%91Party_Ratings\" >2. Third\u2011Party Ratings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#3_Oversight_and_Compliance_Program_Shortfalls\" >3. Oversight and Compliance Program Shortfalls<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#4_Why_These_Observations_Matter\" >4. Why These Observations Matter<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Investor_Protection_Mandate\" >Investor Protection Mandate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Consistent_Exam_Focus\" >Consistent Exam Focus<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Common_Compliance_Pitfalls_Seen_by_Examiners\" >Common Compliance Pitfalls Seen by Examiners<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Expert_and_Industry_Commentary\" >Expert and Industry Commentary<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Professional_Services_and_Lawyers\" >Professional Services and Lawyers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Risk_Compliance_Professionals\" >Risk &amp; Compliance Professionals<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Case_Examples_of_Deficiencies\" >Case Examples of Deficiencies<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Scenario_A_%E2%80%94_Influencer_Compensation\" >Scenario A \u2014 Influencer Compensation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Scenario_B_%E2%80%94_Misleading_Ratings_Usage\" >Scenario B \u2014 Misleading Ratings Usage<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#What_Advisers_Should_Do_Now\" >What Advisers Should Do Now<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Summary_%E2%80%94_Key_Takeaways\" >Summary \u2014 Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Context_What_the_SEC_Released\" >Context: What the SEC Released<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Case_Study%E2%80%AF1_%E2%80%94_Incentivized_Testimonials_Without_Proper_Disclosures\" >Case Study\u202f1 \u2014 Incentivized Testimonials Without Proper Disclosures<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Situation\" >Situation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#What_the_SEC_Observed\" >What the SEC Observed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Rule_Requirements\" >Rule Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Commentary\" >Commentary<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Case_Study%E2%80%AF2_%E2%80%94_Third%E2%80%91Party_Ratings_Misused_in_Performance_Claims\" >Case Study\u202f2 \u2014 Third\u2011Party Ratings Misused in Performance Claims<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Situation-2\" >Situation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#What_the_SEC_Observed-2\" >What the SEC Observed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Rule_Requirements-2\" >Rule Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Commentary-2\" >Commentary<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Case_Study%E2%80%AF3_%E2%80%94_Weak_Compliance_Procedures_Across_Digital_Content\" >Case Study\u202f3 \u2014 Weak Compliance Procedures Across Digital Content<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Situation-3\" >Situation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#What_the_SEC_Observed-3\" >What the SEC Observed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Rule_Requirements-3\" >Rule Requirements<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Commentary-3\" >Commentary<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Common_Themes_in_SEC_Observations\" >Common Themes in SEC Observations<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#1_Disclosure_Gaps\" >1. Disclosure Gaps<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#2_Documentation_Due_Diligence\" >2. Documentation &amp; Due Diligence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#3_Operational_Weaknesses\" >3. Operational Weaknesses<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Industry_Expert_Commentary\" >Industry &amp; Expert Commentary<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#From_Legal_Advisors\" >From Legal Advisors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#From_Compliance_Officers\" >From Compliance Officers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#From_Industry_Publications\" >From Industry Publications<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Practical_Lessons_Takeaways\" >Practical Lessons &amp; Takeaways<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#_Review_and_document_due_diligence\" >\u00a0Review and document due diligence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#_Tailor_disclosures\" >\u00a0Tailor disclosures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#_Operationalise_policies\" >\u00a0Operationalise policies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#_Track_and_retain_records\" >\u00a0Track and retain records<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/lite14.net\/blog\/2026\/01\/03\/sec-releases-new-compliance-observations-on-the-marketing-rule\/#Bottom_Line\" >Bottom Line<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Was_Issued_%E2%80%94_A_New_SEC_Risk_Alert\"><\/span><strong>What Was Issued \u2014 A New SEC Risk Alert<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On <strong>December 16, 2025<\/strong>, the <strong>SEC\u2019s Division of Examinations (Exams Staff)<\/strong> published a <strong>Risk Alert<\/strong> outlining recurring compliance <em>deficiencies and observations<\/em> by examiners related to <strong>Rule 206(4)\u20111 under the Investment Advisers Act of 1940<\/strong>, commonly known as the <strong>Marketing Rule<\/strong>. This alert focuses on how registered investment advisers (RIAs) are actually complying \u2014 or failing to comply \u2014 with certain provisions of the rule in practice. (<a title=\"SEC Exam Staff\u2019s Latest Risk Alert Regarding Compliance with the Advisers Act Marketing Rule\" href=\"https:\/\/www.mayerbrown.com\/en\/insights\/publications\/2025\/12\/sec-exam-staffs-latest-risk-alert-regarding-compliance-with-the-advisers-act-marketing-rule?utm_source=chatgpt.com\">Mayer Brown<\/a>)<\/p>\n<p>This is the <strong>first Marketing Rule risk alert in over a year<\/strong>, and comes as part of the SEC\u2019s ongoing supervisory program to assess how advisers implement the rule. (<a title=\"SEC Exam Staff\u2019s Latest Risk Alert Regarding Compliance with the Advisers Act Marketing Rule\" href=\"https:\/\/www.mayerbrown.com\/en\/insights\/publications\/2025\/12\/sec-exam-staffs-latest-risk-alert-regarding-compliance-with-the-advisers-act-marketing-rule?utm_source=chatgpt.com\">Mayer Brown<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"1_Key_Areas_Covered_in_the_Observations\"><\/span><strong>1. Key Areas Covered in the Observations<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Testimonials_and_Endorsements\"><\/span><strong>Testimonials and Endorsements<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Marketing Rule permits the use of <em>client testimonials<\/em> and <em>endorsements<\/em> in adviser communications \u2014 but only if <strong>strict disclosure and oversight conditions<\/strong> are met.<\/p>\n<p>The SEC observed that many advisers:<\/p>\n<ul>\n<li><strong>Fail to provide complete and required disclosures<\/strong> about compensation, relationships, and conflicts of interest when testimonials or endorsements are used.<\/li>\n<li>Do not have <strong>adequate written agreements<\/strong> governing the use of compensated promoters or paid endorsers.<\/li>\n<li>Misapply or omit required disclosures on social media posts or referral\/influencer programs.<\/li>\n<\/ul>\n<p>These gaps can mislead clients or prospects about an adviser\u2019s services or the impartiality of the testimonial. (<a title=\"The SEC\u2019s latest Marketing Rule Risk Alert: key takeaways for advisers | IQ-EQ U.S.\" href=\"https:\/\/iqeq.com\/us\/insights\/the-secs-latest-marketing-rule-risk-alert-key-takeaways-for-advisers\/?utm_source=chatgpt.com\">IQ-EQ<\/a>)<\/p>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"2_Third%E2%80%91Party_Ratings\"><\/span><strong>2. Third\u2011Party Ratings<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under the rule, advisers can include ratings from independent third parties only if:<\/p>\n<ul>\n<li>The adviser performed <em>reasonable due diligence<\/em> on the rating source;<\/li>\n<li>Required disclosures are provided about what the rating means and how it was generated.<\/li>\n<\/ul>\n<p>Examiners found that advisers sometimes:<\/p>\n<ul>\n<li>Didn\u2019t adequately document or disclose how third\u2011party ratings were vetted,<\/li>\n<li>Failed to satisfy disclosure requirements about rating methodologies or limitations.<\/li>\n<\/ul>\n<p>This raises concerns that investors could be misled about the significance or reliability of such ratings. (<a title=\"SEC Issues New Compliance Observations on Marketing Rule | Alston &amp; Bird - JDSupra\" href=\"https:\/\/www.jdsupra.com\/legalnews\/sec-issues-new-compliance-observations-5119712\/?utm_source=chatgpt.com\">JD Supra<\/a>)<\/p>\n<hr \/>\n<h3><span class=\"ez-toc-section\" id=\"3_Oversight_and_Compliance_Program_Shortfalls\"><\/span><strong>3. Oversight and Compliance Program Shortfalls<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Across both areas above, the SEC highlighted <strong>weaknesses in written policies and procedures<\/strong>:<\/p>\n<ul>\n<li>Compliance manuals may <em>reference the Marketing Rule<\/em>, but lack <strong>specific processes<\/strong> for managing testimonials, endorsements, or third\u2011party ratings.<\/li>\n<li>Documentation of <strong>oversight and due diligence<\/strong> is frequently missing or incomplete.<\/li>\n<li>Firms often fail to <em>consistently apply the rule\u2019s requirements<\/em> in practice \u2014 especially for digital ads and social media posts. (<a title=\"The SEC\u2019s latest Marketing Rule Risk Alert: key takeaways for advisers | IQ-EQ U.S.\" href=\"https:\/\/iqeq.com\/us\/insights\/the-secs-latest-marketing-rule-risk-alert-key-takeaways-for-advisers\/?utm_source=chatgpt.com\">IQ-EQ<\/a>)<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"4_Why_These_Observations_Matter\"><\/span><strong>4. Why These Observations Matter<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Investor_Protection_Mandate\"><\/span><strong>Investor Protection Mandate<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The SEC\u2019s mission includes preventing <em>fraud, manipulation, and deception<\/em> in adviser communications. The Marketing Rule is intended to ensure that advertising \u2014 including performance info, testimonials, or ratings \u2014 is <em>not misleading<\/em> and all required disclosures are <em>clear and accurate<\/em>. (<a title=\"SEC Cautions Advisors Over Marketing Rules Compliance\" href=\"https:\/\/401kspecialistmag.com\/sec-cautions-advisors-over-marketing-rules-compliance\/?utm_source=chatgpt.com\">401kspecialistmag.com<\/a>)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Consistent_Exam_Focus\"><\/span><strong>Consistent Exam Focus<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>These observations align with the SEC\u2019s 2026 Exam Priorities, which emphasize:<\/p>\n<ul>\n<li>Continued oversight of foundational compliance requirements,<\/li>\n<li>Focus on disclosures that affect <em>retail investor understanding<\/em> of adviser marketing claims. (<a title=\"SEC Issues Risk Alert To Remind Advisers Of Core Compliance Expectations - Securities - United States\" href=\"https:\/\/www.mondaq.com\/unitedstates\/securities\/1724612\/sec-issues-risk-alert-to-remind-advisers-of-core-compliance-expectations?utm_source=chatgpt.com\">Mondaq<\/a>)<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Common_Compliance_Pitfalls_Seen_by_Examiners\"><\/span><strong>Common Compliance Pitfalls Seen by Examiners<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to advisory and legal analyses of the alert, examiners have repeatedly seen advisers:<\/p>\n<p>Use <strong>compensated testimonials without all required disclosures<\/strong> (e.g., compensation, material conflicts, promoter status).<br \/>\nOverlook <strong>written agreements or due diligence documentation<\/strong> for influencers, referral partners, or third\u2011party raters.<br \/>\nFail to monitor and supervise <strong>social media and digital advertising<\/strong> for Marketing Rule compliance.<br \/>\nMisinterpret or under\u2011apply disclosure requirements for ratings or endorsements. (<a title=\"The SEC\u2019s latest Marketing Rule Risk Alert: key takeaways for advisers | IQ-EQ U.S.\" href=\"https:\/\/iqeq.com\/us\/insights\/the-secs-latest-marketing-rule-risk-alert-key-takeaways-for-advisers\/?utm_source=chatgpt.com\">IQ-EQ<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Expert_and_Industry_Commentary\"><\/span><strong>Expert and Industry Commentary<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Professional_Services_and_Lawyers\"><\/span><em>Professional Services and Lawyers<\/em><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Law firms and compliance specialists view the SEC alert as a <strong>\u201crefresher\u201d on core Marketing Rule requirements<\/strong> and a signal that <strong>examiners are looking at implementation, not just written policies<\/strong>.<\/li>\n<li>Many remind RIAs that <strong>documentation matters<\/strong>\u2014it\u2019s not enough to <em>intend<\/em> compliance if you have no audit trail showing you actually conducted the required disclosures and due diligence before publication. (<a title=\"SEC Issues Risk Alert to Remind Advisers of Core Compliance Expectations\" href=\"https:\/\/www.jdsupra.com\/legalnews\/sec-issues-risk-alert-to-remind-1768973\/?utm_source=chatgpt.com\">JD Supra<\/a>)<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Risk_Compliance_Professionals\"><\/span><em>Risk &amp; Compliance Professionals<\/em><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Some compliance officers emphasize that the alert highlights a broader industry issue: advisers often <em>continue past practices<\/em> under the impression they already comply, but the Marketing Rule\u2019s nuanced disclosure requirements trip them up \u2014 especially in new digital and social formats. (<a title=\"SEC Issues New Warning on Marketing Rule Compliance\" href=\"https:\/\/www.thinkadvisor.com\/2025\/12\/17\/sec-issues-new-warning-on-marketing-rule-compliance\/?utm_source=chatgpt.com\">ThinkAdvisor<\/a>)<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Case_Examples_of_Deficiencies\"><\/span><strong>Case Examples of Deficiencies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While the SEC alert does not name firms, analogous examples in public commentary and legal analyses reflect typical scenarios:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Scenario_A_%E2%80%94_Influencer_Compensation\"><\/span><strong>Scenario A \u2014 Influencer Compensation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An adviser used compensated industry bloggers to tout its services without disclosing the compensation arrangement or whether the blogger was a current client. This lacked the explicit disclosures required under the Marketing Rule. (<a title=\"The SEC\u2019s latest Marketing Rule Risk Alert: key takeaways for advisers | IQ-EQ U.S.\" href=\"https:\/\/iqeq.com\/us\/insights\/the-secs-latest-marketing-rule-risk-alert-key-takeaways-for-advisers\/?utm_source=chatgpt.com\">IQ-EQ<\/a>)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Scenario_B_%E2%80%94_Misleading_Ratings_Usage\"><\/span><strong>Scenario B \u2014 Misleading Ratings Usage<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An adviser cited a third\u2011party ranking without documenting the methodology or limitations of the ratings, potentially implying unwarranted endorsement or credibility. (<a title=\"SEC Issues New Compliance Observations on Marketing Rule | Alston &amp; Bird - JDSupra\" href=\"https:\/\/www.jdsupra.com\/legalnews\/sec-issues-new-compliance-observations-5119712\/?utm_source=chatgpt.com\">JD Supra<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"What_Advisers_Should_Do_Now\"><\/span><strong>What Advisers Should Do Now<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To address these observations, industry experts recommend advisers:<\/p>\n<p><strong>Review and update written policies and procedures<\/strong> to specifically address testimonials, endorsements and third\u2011party ratings.<\/p>\n<p><strong>Implement documented due diligence and oversight practices<\/strong> for promoters and ratings sources.<\/p>\n<p><strong>Train compliance and marketing teams<\/strong> to apply the rule across <em>all advertising channels<\/em>, including social media and digital platforms.<\/p>\n<p><strong>Maintain clear records<\/strong> demonstrating how disclosures were satisfied and oversight was conducted in each case. (<a title=\"The SEC\u2019s latest Marketing Rule Risk Alert: key takeaways for advisers | IQ-EQ U.S.\" href=\"https:\/\/iqeq.com\/us\/insights\/the-secs-latest-marketing-rule-risk-alert-key-takeaways-for-advisers\/?utm_source=chatgpt.com\">IQ-EQ<\/a>)<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Summary_%E2%80%94_Key_Takeaways\"><\/span><strong>Summary \u2014 Key Takeaways<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>The <strong>SEC\u2019s latest Risk Alert<\/strong> outlines common <strong>compliance weaknesses under the Marketing Rule<\/strong>, especially around testimonials, endorsements and third\u2011party ratings. (<a title=\"SEC Exam Staff\u2019s Latest Risk Alert Regarding Compliance with the Advisers Act Marketing Rule\" href=\"https:\/\/www.mayerbrown.com\/en\/insights\/publications\/2025\/12\/sec-exam-staffs-latest-risk-alert-regarding-compliance-with-the-advisers-act-marketing-rule?utm_source=chatgpt.com\">Mayer Brown<\/a>)<\/li>\n<li>Examiners are increasingly <strong>reviewing both written compliance frameworks <em>and how they are applied in practice<\/em><\/strong>. (<a title=\"SEC Issues Risk Alert To Remind Advisers Of Core Compliance Expectations - Securities - United States\" href=\"https:\/\/www.mondaq.com\/unitedstates\/securities\/1724612\/sec-issues-risk-alert-to-remind-advisers-of-core-compliance-expectations?utm_source=chatgpt.com\">Mondaq<\/a>)<\/li>\n<li>Advisers are reminded to focus on <strong>accurate disclosures, documented oversight, and thorough due diligence<\/strong> to avoid misleading marketing communications. (<a title=\"SEC Issues New Warning on Marketing Rule Compliance\" href=\"https:\/\/www.thinkadvisor.com\/2025\/12\/17\/sec-issues-new-warning-on-marketing-rule-compliance\/?utm_source=chatgpt.com\">ThinkAdvisor<\/a>)<\/li>\n<li>The alert aligns with broader SEC oversight priorities emphasizing <strong>retail investor protection and transparent adviser advertising practices<\/strong>. (<a title=\"SEC Issues Risk Alert To Remind Advisers Of Core Compliance Expectations - Securities - United States\" href=\"https:\/\/www.mondaq.com\/unitedstates\/securities\/1724612\/sec-issues-risk-alert-to-remind-advisers-of-core-compliance-expectations?utm_source=chatgpt.com\">Mondaq<\/a>)<\/li>\n<\/ul>\n<p>Here\u2019s a <strong>case\u2011study\u202fand expert\u2011commentary summary<\/strong> of the <strong>SEC\u2019s latest compliance observations on the Marketing Rule<\/strong> \u2014 with real\u2011world examples, common pitfalls examiners are seeing in practice, and what industry stakeholders are saying.<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Context_What_the_SEC_Released\"><\/span><strong>Context: What the SEC Released<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In <strong>December\u202f2025<\/strong>, the <strong>U.S. Securities and Exchange Commission (SEC) Division of Examinations<\/strong> issued a <strong>Risk Alert<\/strong> summarising recurring <strong>compliance issues and observations<\/strong> in how registered investment advisers (RIAs) are applying the <strong>Marketing Rule (Rule\u202f206(4)\u20111)<\/strong> under the Investment Advisers Act of 1940. The alert reflects what SEC examiners are seeing in examinations across firms \u2014 focusing not just on policy language but on <em>how the rule is applied in real communications and oversight programs<\/em>.<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Case_Study%E2%80%AF1_%E2%80%94_Incentivized_Testimonials_Without_Proper_Disclosures\"><\/span><strong>Case Study\u202f1 \u2014 Incentivized Testimonials Without Proper Disclosures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Situation\"><\/span><strong>Situation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A registered adviser launched a digital marketing campaign featuring <strong>testimonials and social media posts<\/strong> from compensated \u201cbrand ambassadors\u201d promoting the firm\u2019s services.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_the_SEC_Observed\"><\/span><strong>What the SEC Observed<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Examiners found that:<\/p>\n<ul>\n<li>Required <strong>compensation disclosures<\/strong> were <strong>not included or were incomplete<\/strong>;<\/li>\n<li>Agreements with endorsers lacked <strong>terms establishing compliance oversight<\/strong>;<\/li>\n<li>Content did not explain the <strong>material conflicts of interest<\/strong> tied to compensation.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Rule_Requirements\"><\/span><strong>Rule Requirements<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under the Marketing Rule, advisers may use testimonials and endorsements only if they comply with disclosure requirements \u2014 including disclosure of compensation, material conflicts, and whether the promoter is a client \u2014 and subject them to oversight in policies and procedures.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Commentary\"><\/span><strong>Commentary<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><em>Compliance attorneys<\/em> note that <strong>omission of clear compensation disclosures<\/strong> \u2014 even in social media captions \u2014 is a leading cause of misleading communications flagged by the SEC.<\/li>\n<li>One industry compliance officer said, \u201cFirms <em>think<\/em> including a hashtag or generic note is enough; the SEC wants clarity and context, not ambiguity.\u201d<\/li>\n<\/ul>\n<p><strong>Lesson:<\/strong> Clear, direct compensation disclosures matter at every touchpoint, including Instagram, TikTok, and influencer content.<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Case_Study%E2%80%AF2_%E2%80%94_Third%E2%80%91Party_Ratings_Misused_in_Performance_Claims\"><\/span><strong>Case Study\u202f2 \u2014 Third\u2011Party Ratings Misused in Performance Claims<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Situation-2\"><\/span><strong>Situation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An investment adviser cited an industry \u201cTop 50 Adviser\u201d ranking from a vendor newsletter in a brochure and on its website.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_the_SEC_Observed-2\"><\/span><strong>What the SEC Observed<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Examiners saw:<\/p>\n<ul>\n<li>A lack of <strong>documentation<\/strong> about how the adviser vetted the rating provider\u2019s methodology;<\/li>\n<li>Missing disclosures regarding <strong>rating criteria, limitations, or conflicts<\/strong>;<\/li>\n<li>No records showing <strong>due diligence or analysis<\/strong> performed before using the rating in marketing.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Rule_Requirements-2\"><\/span><strong>Rule Requirements<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Marketing Rule allows use of third\u2011party ratings <em>only if<\/em> the adviser performs <em>reasonable due diligence<\/em> on the provider and makes <strong>all required disclosures<\/strong> about how the rating was generated, its limitations, and any conflicts.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Commentary-2\"><\/span><strong>Commentary<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Legal advisors<\/strong> highlight that reliance on a rating without disclosure may make the adviser\u2019s promotional materials appear <em>unduly favorable<\/em> \u2014 misleading investors about the adviser\u2019s track record or standing.<\/li>\n<li>Industry commentators say this is especially risky in <strong>email blasts or landing pages<\/strong>, where ratings are presented without full contextual detail.<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Case_Study%E2%80%AF3_%E2%80%94_Weak_Compliance_Procedures_Across_Digital_Content\"><\/span><strong>Case Study\u202f3 \u2014 Weak Compliance Procedures Across Digital Content<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Situation-3\"><\/span><strong>Situation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>An advisory firm\u2019s compliance manual referenced the Marketing Rule generally but lacked <strong>specific procedures<\/strong> for reviewing and approving digital ads, emails, and social posts.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_the_SEC_Observed-3\"><\/span><strong>What the SEC Observed<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Examiners noted:<\/p>\n<ul>\n<li>Digital campaigns being launched without evidence of <strong>pre\u2011approval<\/strong> or documented review;<\/li>\n<li>Social media content lacking consistent <strong>disclaimer or risk disclosure language<\/strong> required when performance is shown;<\/li>\n<li><strong>Recording and retention gaps<\/strong> for versions of ads sent to clients or prospects.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Rule_Requirements-3\"><\/span><strong>Rule Requirements<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Marketing Rule requires advisers to have written policies and procedures reasonably designed to ensure compliance with all aspects of the rule \u2014 including <strong>review, approval, recordkeeping, and oversight of communications<\/strong>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Commentary-3\"><\/span><strong>Commentary<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Compliance practitioners<\/strong> observe that many firms <em>formally adopt policies<\/em> but fail to <em>operationalize them<\/em> across all platforms, especially newer digital media channels.<\/li>\n<li>A risk officer commented, \u201cPolicies that aren\u2019t reflected in <strong>actual workflows<\/strong> are meaningless in SEC exams.\u201d<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Common_Themes_in_SEC_Observations\"><\/span><strong>Common Themes in SEC Observations<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Disclosure_Gaps\"><\/span><strong>1. Disclosure Gaps<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The most consistent issue is <strong>inadequate or unclear disclosures<\/strong> tied to testimonials, endorsements, and third\u2011party ratings \u2014 especially in digital contexts where space is limited (e.g., social media).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Documentation_Due_Diligence\"><\/span><strong>2. Documentation &amp; Due Diligence<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Examiners want evidence that advisers have:<\/p>\n<ul>\n<li>Performed <strong>due diligence on endorsements\/ratings<\/strong>;<\/li>\n<li>Conducted <strong>appropriate vetting and oversight<\/strong>;<\/li>\n<li>Preserved records showing <em>why<\/em> a communication complied with the rule.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_Operational_Weaknesses\"><\/span><strong>3. Operational Weaknesses<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There\u2019s a gap between <strong>policy language<\/strong> and <strong>actual practice<\/strong> \u2014 especially in:<\/p>\n<ul>\n<li>Social media postings,<\/li>\n<li>Influencer\/affiliate content,<\/li>\n<li>Third\u2011party content reposted or shared by advisers.<\/li>\n<\/ul>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Industry_Expert_Commentary\"><\/span><strong>Industry &amp; Expert Commentary<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"From_Legal_Advisors\"><\/span><strong>From Legal Advisors<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Many compliance lawyers say the alert serves as a <strong>\u201ccore compliance reminder\u201d:<\/strong> it doesn\u2019t introduce new obligations but clarifies where advisers are <strong>falling short in practice<\/strong>.<\/li>\n<li>A partner at a securities law firm noted, \u201cThe SEC wants advisers to <em>show<\/em> compliance \u2014 not just <em>say<\/em> in their manuals that they follow the rule.\u201d<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"From_Compliance_Officers\"><\/span><strong>From Compliance Officers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Operational compliance professionals emphasise that exam readiness means more than having a written policy \u2014 it means ensuring <strong>review workflows<\/strong>, <strong>checklists<\/strong>, and <strong>sign\u2011offs<\/strong> are used consistently across all marketing channels.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"From_Industry_Publications\"><\/span><strong>From Industry Publications<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Trade reporting described the alert as a signal that the SEC is shifting from rule implementation guidance to <strong>compliance execution assessment<\/strong> \u2014 that is, examiners are looking at <em>how<\/em> firms actually apply the rule.<\/li>\n<\/ul>\n<p><strong>Key takeaway:<\/strong> Firms that have <em>policies that only exist on paper<\/em> may fare poorly under examination; SEC exam staff expect evidence that procedures are followed consistently and recorded appropriately.<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Practical_Lessons_Takeaways\"><\/span><strong>Practical Lessons &amp; Takeaways<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"_Review_and_document_due_diligence\"><\/span><strong>\u00a0Review and document due diligence<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ensure you have written evidence of vetting <strong>any third\u2011party content<\/strong> you use in marketing \u2014 including testimonials and ratings.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"_Tailor_disclosures\"><\/span><strong>\u00a0Tailor disclosures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Disclosures shouldn\u2019t be boilerplate \u2014 they must meet the rule\u2019s <em>specific criteria<\/em> and be presented clearly <em>where the content appears<\/em>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"_Operationalise_policies\"><\/span><strong>\u00a0Operationalise policies<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Convert written policies into <strong>checklists, approval logs, and training<\/strong> for communicators and social media teams.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"_Track_and_retain_records\"><\/span><strong>\u00a0Track and retain records<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Maintain retentive records of:<\/p>\n<ul>\n<li>Marketing materials as filed vs as published,<\/li>\n<li>Oversight and compliance sign\u2011offs,<\/li>\n<li>Supporting documentation for ratings and endorsements.<\/li>\n<\/ul>\n<p>All of these matter in an exam context.<\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Bottom_Line\"><\/span><strong>Bottom Line<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The SEC\u2019s latest <strong>Marketing Rule compliance observations<\/strong> make clear that:<\/p>\n<ul>\n<li>It\u2019s no longer enough to \u201chave\u201d a Marketing Rule policy;<\/li>\n<li>Examiners are looking for <strong>evidence of effective implementation<\/strong>;<\/li>\n<li>Digital ads and social posts, influencer content, and third\u2011party ratings are <em>common trouble spots<\/em>;<\/li>\n<li>Clear, complete disclosures and robust documentation are exam priorities.<\/li>\n<\/ul>\n<p>This Risk Alert reflects a broader SEC focus on <em>practical compliance over theoretical policy<\/em>, especially where investor perceptions could be influenced by marketing communications.<\/p>\n<hr \/>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What Was Issued \u2014 A New SEC Risk Alert On December 16, 2025, the SEC\u2019s Division of Examinations (Exams Staff) published a Risk Alert outlining&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[270,90],"tags":[],"class_list":["post-18389","post","type-post","status-publish","format-standard","hentry","category-digital-marketing","category-news-update"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEC Releases New Compliance Observations on the Marketing Rule - Lite14 Tools &amp; 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