Zeidler Group has urged asset managers to treat the SEC’s latest Marketing Rule FAQs as a targeted clarification rather than a market-moving change, arguing that firms should “respond” with context and judgement instead of “reacting” to every new piece of regulatory guidance.
According to Zeidler Group, the SEC’s update—released last Friday—focuses on two narrow areas that apply only in limited, fact-specific circumstances, and should not be overstated when compared with the regulator’s updates issued last March.
Zeidler Group said the refreshed guidance touches on (1) the use of model fees where performance presentations may differ from the fees an intended audience is expected to pay, and (2) the use of compensated testimonials and endorsements from individuals subject to certain final orders under Section 203(e)(9) of the Advisers Act.
In the asset management world, Zeidler Group said the instinct should never be to “react” to an FAQ update, but to “respond” in a measured way—because initial interpretations can exaggerate significance, add little practical clarity, and even create confusion if applied too broadly across marketing, disclosure and compliance processes.
Zeidler Group also linked the discussion to the growing role of AI in compliance, warning that rapid adoption increases the need for a “human in the loop”—a practitioner who understands how the law is applied in real operational contexts, not simply how it is written.
In particular, Zeidler Group said it is increasingly seeing examples of legal and compliance AI systems that are “over-trained” and produce excessive false positives, creating friction for marketing teams and compliance reviewers without materially improving investor protection outcomes.
To address that challenge, Zeidler Group said it combines practical regulatory experience with AI so that updates can be incorporated into legal tech tools in a way that improves accuracy while avoiding inflated compliance flags and unnecessary operational noise.
Zeidler Group highlighted its Marketing Material Review Tool (MMR-Tool), describing it as an AI-powered compliance solution designed to review and assess asset management marketing materials against applicable regulatory requirements, including the SEC Marketing Rule.
Following the SEC’s latest update, Zeidler Group said it will retrain and fine-tune the MMR-Tool so its legal knowledge remains current, while ensuring the tool interprets the update with the judgement of a seasoned asset management lawyer rather than merely treating new text as a trigger for additional warnings.
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