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Data & Research March 1, 2024
IAA and CFA Institute Conducting Survey on Marketing Rule Compliance
The survey seeks to collect data on compliance practices.
Reported by Paul Mulholland
The CFA Institute United States Investment Performance Committee and the Investment Adviser Association are conducting a survey of investment advisers on their compliance practices regarding the Marketing Rule.
The survey is open for responses until April 1.
Advisers responding to the survey should be prepared to answer questions on their firm’s size, and their use of the following in their marketing materials: net returns and performance; performance time intervals; attribution effects; annual and cumulative performance; time-weighting; audience identification for hypothetical performance; and issues related to database entries.
The Marketing Rule is a regulation enforced by the Securities and Exchange Commission that came into effect in November 2022. The rule requires that advisers only use hypothetical performance if it relevant to the intended audience’s objectives. It also forbids advisers from using gross performance in marketing materials unless net performance is also presented, among other requirements.
The link to take the survey can be found here.