1 hr 11 min

S3:E10 | Marketing Rule Master Class Episode 5 - Adventures in Marketing | Compliance in Context The Securities Compliance Podcast: Compliance In Context

    • Business

Welcome to Episode 5 of the Marketing Rule Master Class mini-series.  Episode 5 focuses on testimonials, endorsements, and third-party ratings. Moderator, Patrick Hayes, Calfee and panelists Jaqueline Hummel, ACA, Anthony Dillingham, ACA, and Matt Shepherd, ACA, delve into the nuances and traps for the weary when utilizing testimonials, endorsements and third-party ratings.  While the new rule is a potential game-changer for firms, actual implementation comes with caveats and compliance burdens.  We hope you enjoy this installment of the Master Class mini-series!
 
Show
Interview with Jacqueline Hummel, Anthony Dillingham, Matt Shepherd

7:11: Review of the industry (social media, adoption and entanglement, live presentation/speeches, inadvertent endorsements).
45:36: Building the right disclosures (disclosure of compensation and conflicts of interest)
1:01:40: Third Party Ratings
1:08:20: How will this area be reviewed by the Division of Examinations?

 
Quotes
07:33 - “The prior advertising rule contained an outright prohibition against the inclusion of testimonials and over time that was supplemented by a series of no-action letters where essentially the industry was writing to the SCC and saying, ‘If we do this, is this a testimonial?’ And they would say, ‘Well, maybe but not if you do it this way.’” - Matt 
10:04 - “The definition of endorsement and testimonial… They’re not the same but they are very, very similar. So, just for the sake of keeping the conversation simple, I’m going to say that they’re basically the same and what’s different between the two is the identity of the person who makes that statement.” - Matt  
18:48 - “You still have to remember that no matter what you put out there you are still subject to the fraud provision of the Advisers Act.” - Jacqui
31.52 – “The degree of adoption and entanglement, whether a third-party communication is even going to be deemed an advertisement of the adviser at all, is going to be dependent on the extent the adviser has adopted or entangled itself.” – Patrick
49:57 – “There is still going to be a dichotomy between state registered investment advisers and federally registered investment advisers.  So, while many states will follow the SEC’s lead, there are still exceptions.” – Jacqui
1:03:32  - “It is always best practice to disclose whatever the reader, or listener, or the watcher of that marketing material would want to know.  What does this rating mean in context and how did you get it?”– Jacqui
 
Resources
ACA Group Marketing Rule Resource Library
LinkedIn: ACA Group, Compliance in Context, NSCP
Twitter: @acacompliance, @compliancepod
Websites: ACA Group,

Welcome to Episode 5 of the Marketing Rule Master Class mini-series.  Episode 5 focuses on testimonials, endorsements, and third-party ratings. Moderator, Patrick Hayes, Calfee and panelists Jaqueline Hummel, ACA, Anthony Dillingham, ACA, and Matt Shepherd, ACA, delve into the nuances and traps for the weary when utilizing testimonials, endorsements and third-party ratings.  While the new rule is a potential game-changer for firms, actual implementation comes with caveats and compliance burdens.  We hope you enjoy this installment of the Master Class mini-series!
 
Show
Interview with Jacqueline Hummel, Anthony Dillingham, Matt Shepherd

7:11: Review of the industry (social media, adoption and entanglement, live presentation/speeches, inadvertent endorsements).
45:36: Building the right disclosures (disclosure of compensation and conflicts of interest)
1:01:40: Third Party Ratings
1:08:20: How will this area be reviewed by the Division of Examinations?

 
Quotes
07:33 - “The prior advertising rule contained an outright prohibition against the inclusion of testimonials and over time that was supplemented by a series of no-action letters where essentially the industry was writing to the SCC and saying, ‘If we do this, is this a testimonial?’ And they would say, ‘Well, maybe but not if you do it this way.’” - Matt 
10:04 - “The definition of endorsement and testimonial… They’re not the same but they are very, very similar. So, just for the sake of keeping the conversation simple, I’m going to say that they’re basically the same and what’s different between the two is the identity of the person who makes that statement.” - Matt  
18:48 - “You still have to remember that no matter what you put out there you are still subject to the fraud provision of the Advisers Act.” - Jacqui
31.52 – “The degree of adoption and entanglement, whether a third-party communication is even going to be deemed an advertisement of the adviser at all, is going to be dependent on the extent the adviser has adopted or entangled itself.” – Patrick
49:57 – “There is still going to be a dichotomy between state registered investment advisers and federally registered investment advisers.  So, while many states will follow the SEC’s lead, there are still exceptions.” – Jacqui
1:03:32  - “It is always best practice to disclose whatever the reader, or listener, or the watcher of that marketing material would want to know.  What does this rating mean in context and how did you get it?”– Jacqui
 
Resources
ACA Group Marketing Rule Resource Library
LinkedIn: ACA Group, Compliance in Context, NSCP
Twitter: @acacompliance, @compliancepod
Websites: ACA Group,

1 hr 11 min