28 September 2022
Jones Day
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On September 19, 2022, the SEC’s Division of Examinations
issued a Hazard Alert relating to the upcoming November 4,
2022, final compliance date for The mannequin new promoting rule (the “New
Rule”). The New Rule end outcomes from amendments to The current
Advisers Act promoting rule (206(4)-1) and the rescinding of the
money solicitation rule (206(4)-3).
The danger Alert warns that SEC staff examinations will Think about,
amongst completely different issues, The subsequent areas:
- The adoption and implementation of written insurance coverage policies and
procedures That are pretty designed To cease violations of
the New Rule that embrace objective and testable means. - Compliance with the requirement that advisers have An Low price
basis for believing They are going to be In a place to substantiate supplies
assertions of actuality in commercials. - Compliance with efficiency promoting requirements, collectively with
prohibitions on the inclusion of The subsequent:- Gross efficiency information with out collectively with internet
efficiency. - Performance end outcomes with out specifying the time interval (not
relevant To Private funds). - Any assertion that the SEC has accredited or considered any
calculation or currentation of efficiency end outcomes. - Performance from fewer than all portfolios with considerably
comparable funding insurance coverage policies, goals, And strategies As a Outcome of the
portfolio being provided Inside the commercial. - Extracted efficiency till The required circumstances are
met. - Hypothetical efficiency till The required circumstances are
met. - Predecessor efficiency till The required circumstances are
met.
- Gross efficiency information with out collectively with internet
- Compliance with The requirements of the books and data rule
adopted in Reference …….