Regulatory Freeze Could Bring Changes to New SEC Marketing Rule

WHAT HAPPENED?

On Jan. 20, 2021, President Biden’s first day in office, the White House issued a memorandum indicating a regulatory freeze. The freeze requires all rules from U.S. departments and agencies that are not yet published in the Federal Register to be pulled for review and approval by incoming officials.

The Securities and Exchange Commission’s new marketing rule, which was released on Dec. 22, 2020, is also subject to the regulatory freeze, as it has not yet been published in the Federal Register. With the entrance of new SEC Chairman, Gary Gensler, who is awaiting Senate confirmation, it is possible there will be another review of the rule and subsequent changes to its provisions.

WHAT DOES THIS MEAN FOR ME?

Until the new marketing rule is published in the Federal Register, its requirements are not final. Your firm should continue operating under the existing advertising and cash solicitation rules and wait to begin transitioning to the new regulations once they are confirmed and published in the Federal Register.

Fairview will provide you updates on the status of the new marketing rule and other regulatory changes as the industry adjusts to new leadership. If you have questions about how your firm can prepare its compliance department for these changes, Fairview can help. Contact us today to find out how our team of compliance experts can assist your firm.

By | 2021-01-28T22:35:46+05:00 Jan 28th, 2021|Fairview® Flash Reports, U.S. Securities and Exchange Commission|

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