If you’re leading compliance or operational risk at a growing asset management firm, your team is probably juggling multiple priorities. You’re managing SEC filings, tightening disclosure processes, and handling pressure from marketing, legal, and leadership teams. Everyone wants things done faster, but compliance requirements aren’t getting simpler. All while working to secure investor trust, streamline compliance efforts, and gain a competitive edge. And the SEC Marketing Rule has only added complexity to that equation.
Since its enforcement ramped up, the SEC has fined nine RIAs over $1.24 million for advertising violations — from unsupported claims to improper use of hypothetical performance. These aren’t isolated misses. They’re signals that regulators expect more rigor, more evidence, and real-time accountability.
To help compliance teams build resilient processes that withstand SEC scrutiny, download The SEC’s Marketing Rule: Evolution, Violations, and Trends. Learn how top asset managers are streamlining marketing approvals, reducing risk, and staying ahead of SEC enforcement trends.
The report includes recent enforcement actions and practical guidance from Kroll’s compliance testing experts. We’ve also created a Best Practices Checklist designed to help firms like yours operationalize the rule quickly and confidently.
Here’s what every asset manager should prioritize now.
1. Substantiate every claim — without scrambling
In 2024, the SEC charged nine firms under Rule 206(4)-1. Each faced similar issues —advertisements contained performance claims they couldn’t back up with documentation. Compliance here involves more than just tracking information in a spreadsheet. You need clear records that show exactly how you reached your claims.
Keep documentation ready to demonstrate your calculations, data sources, and methods behind performance statements. It means you need a system that can:
- Track every marketing asset distributed, from pitch decks to social media
- Link each claim to supporting data (e.g., IRR calculations, benchmarks, third-party sources)
- Produce evidence on demand during reviews or exams
Tip: Automate documentation workflows so that approvals, backup data, and disclaimers live in one place that’s not just accessible to your team, but audit-ready at any time.
2. Gross vs. Net: The SEC is watching for misalignment
Gross returns alone? That’s not enough. According to updated SEC FAQs, any time you present performance — especially IRRs — you must show net and gross side-by-side, using identical timeframes and methods.
Misalignment, whether intentional or not, can trigger enforcement. That means you must remember to:
- Clearly disclose the use of subscription lines of credit
- Avoid switching metrics between net/gross for different assets
- Use uniform layouts and font sizes to meet the SEC’s “fair and balanced” test
Checklist insight: Always pair your IRR disclosures with assumptions and methodologies — and log those disclosures for every version of every document.
3. Hypothetical performance is under the microscope
Regulators issued five RIAs six-figure fines in April 2024 for publishing hypothetical performance online without proper controls. The violations included missing disclosures and a failure to show how the data applied to the audience’s financial goals.
If your marketing includes model portfolios, backtests, or simulations, the SEC expects:
- Labeling that clearly identifies content as hypothetical
- Assumptions and calculations disclosed with transparency
- Controls ensuring the data is shown only to appropriate audiences
Try this instead: Use approval workflows that include audience tagging, version control, and conditional logic to prevent public exposure of non-compliant data.
4. Policies must cover digital channels and be audit-ready
Generic or outdated marketing compliance policies continue to be a common issue flagged by the SEC. Many RIAs still rely on documents that don’t address websites, email, or social media. Others lack clear ownership, timelines for review, or defined thresholds for approvals. Some haven’t updated their policies since the Marketing Rule went into effect — or don’t have formal policies in place at all.
Here’s what you can do to remain compliant:
- Create clear, documented pre-approval workflows
- Map policies to specific requirements in the SEC Marketing Rule
- Involve compliance in every stage, from content ideation to final review
Did you know: Resolver’s GRC platform allows compliance leaders to track approvals, store version histories, and automate policy enforcement across teams.
Visualization of RCM Compliance Overview Dashboard
5. Disclosures must be easy to read
Many firms still bury disclosures in footnotes or use tiny fonts that don’t meet the SEC’s readability standard. If an investor or examiner can’t quickly understand the disclosure, it’s a red flag. The expectation is clear:
- Minimum 8-point font
- High contrast
- Disclosures placed near the related content—not 10 slides later
Reminder: Perform quarterly audits of disclosure practices. Ensure claims are still current, especially when tied to outdated third-party data or benchmarks.
6. Compliance isn’t a last step — it’s the foundation
Enforcement actions consistently show a common breakdown: Compliance wasn’t looped in early enough. When marketing teams move fast without proper oversight or visibility into campaign plans is limited, the risk of violations rises, along with the cost.
Forward-thinking firms are shifting from reactive review to embedded compliance, where:
- Marketing and compliance work collaboratively from the first draft
- Approval processes are tracked in a central system
- Audits can show who reviewed what, when, and how
Learn how Resolver delivers a 95% increase in reporting efficiency.
Get the checklist built for asset managers
We built our SEC Best Practices Checklist with asset managers in mind — especially firms at mid-to-high maturity looking to scale their programs without adding headcount. Fast-track SEC compliance without adding complexity. Download the only SEC Marketing Rule checklist designed for asset managers scaling their compliance efforts more efficiently.
For leaders managing regulatory risk in asset management, the SEC Marketing Rule brings long-term implications — for both firm accountability and personal responsibility. The right processes, tools, and partnerships can help you move from reactive cleanup to proactive leadership, making compliance a source of resilience, transparency, and strategic influence.
Get your free copy of The SEC’s Marketing Rule: Evolution, Violations, and Trends to learn more!