September 7, 2022
Division of Examinations Notice: Rule 206(4)-3 (Cash Payments for Client Solicitations) Rescission and your ADV Brochure
What happened?
Investment advisers with references to cash solicitation arrangements in their Form ADV Part 2A Brochure under Rule 206(4)-3 will likely be receiving a notice from the SEC’s Division of Examinations noting that the Cash Solicitation Rule is being rescinded as of Nov. 4, 2022. The Cash Solicitation Rule is being replaced with the amended Advisers Act Rule 206(4)-1 (the Marketing Rule). Advisers should review the accuracy of their Form ADV Part 2A brochures’ disclosures, including Item 14 (client referrals and other compensation), with respect to the new Marketing Rule.
What does this mean for me?
Advisers should review the accuracy their Form ADV Part 2A brochures’ disclosures, including Item 14 (client referrals and other compensation), with respect to the Marketing Rule. If you have any questions or need help preparing for this change, Fairview® can help. Fairview® provides comprehensive and ongoing compliance services, including comprehensive marketing review, solicitation-related consulting, and complete examination support. Contact us today to learn more.
