We’ve now officially closed Q3 2021, and as we enter Q4 and focus on 2022 planning, compliance teams are assessing new regulatory developments, identifying priorities for the new year. One area of focus for many compliance teams 2022 will be the SEC’s new Marketing Rule, which modernizes the rules regulating investment advisers’ marketing communications. The rule was adopted on December 22, 2020, went into effect on May 4, 2021, and investment advisers have until November 4, 2022 to comply.
We surveyed a group of financial services compliance professionals about the new Marketing Rule at our recent ComplySci 101 webinar and learned the rule is top of mind for most attendees:
- 37% of attendees are in the process of planning for compliance with the new Marketing Rule
- 16% of attendees have a plan in place
- 16% of attendees haven’t started planning, but will do so in the next 6 months
Because the Marketing Rule modernizes several previously existing rules, many compliance teams already preclear their marketing materials. However, we learned there is room for improvement in their preclearance processes, as:
- 77% of attendees use manual processes, like e-mail, to preclear marketing materials
As compliance teams see their scope increase and handle more and more information, relying on time-consuming manual processes is unsustainable and can expose an organization to significant risk. Technology, tools, and automated processes are the clear path forward.
Compliance teams need leverage scalable compliance software to streamline and automate manual activities, such as the preclearance of marketing materials. Less time spent on manual compliance tasks frees compliance to focus more on revenue-generating activities and the big picture of risk across the organization.