The US Securities and Exchange Commission (SEC) has recently issued an order that underscores the Atkins administration’s focus on marketing accuracy, robust recordkeeping, and strong compliance oversight across the advisory sector.
The action serves as a reminder to firms that the regulator continues to hold advisers accountable for the integrity of their communications and the resilience of their compliance programmes, claims ACA Group.
The SEC’s investigation uncovered several deficiencies in the firm’s practices. Among the most notable was the use of misleading marketing claims. The adviser publicly stated it “refuse[d] all conflicts of interest,” yet its Form ADV Part 2A contained disclosures of multiple conflicts. The SEC concluded that the claim was unsubstantiated and therefore violated the Marketing Rule (Rule 206(4)-1).
Recordkeeping practices also fell short of regulatory standards. The firm did not retain required copies of advertisements, including earlier versions of its website. Under the Books and Records Rule (Rule 204-2(a)(11)), advisers are obligated to maintain all advertising records. Failure to do so undermines transparency and makes it difficult for regulators to assess whether firms are adhering to compliance obligations.
Further issues were identified in compliance oversight. The adviser had not conducted the required annual review of its policies and procedures, as stipulated by the Compliance Rule (Rule 206(4)-7). In addition, it relied on third parties for recordkeeping without ensuring adequate controls were in place. The SEC highlighted these oversights as breaches that weaken the effectiveness of compliance frameworks.
Although the Atkins administration represents a different leadership style to its predecessor, the regulator has demonstrated consistency in enforcing its priorities. The emphasis on compliance with the Marketing Rule, Books and Records Rule, and Compliance Rule remains a cornerstone of the SEC’s regulatory agenda. For advisers, this action is a clear signal that lax compliance practices will not go unchecked.
To avoid similar pitfalls, firms are encouraged to carefully review marketing materials to ensure all claims can be substantiated. They must also retain complete and accurate books and records, including historic advertising content, and conduct annual compliance reviews. Addressing identified gaps promptly will help reduce regulatory exposure.
Specialist compliance support can play a vital role in navigating these challenges. ACA Group, for instance, provides advisory services, managed solutions, and regulatory technology to strengthen firms’ compliance capabilities. Its ComplianceAlpha platform offers tools to automate compliance tasks, archive marketing materials in line with SEC requirements, and streamline audit responses. Alongside this, ACA’s managed services team helps firms mitigate risks by overseeing marketing reviews and other obligations, while its consulting arm provides expertise from a team that includes more than 60 former regulators.
As the regulatory landscape continues to evolve, firms that invest in robust compliance frameworks will be best positioned to meet the SEC’s expectations. By combining advisory expertise, innovative RegTech solutions, and managed services, they can build resilient programmes that not only satisfy regulatory demands but also enhance investor confidence.
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