On November 4, 2022, the Securities and Exchange Commission’s (SEC) new marketing rule goes into effect. When polled, we found that approximately 50% of our audience have not yet begun implementation of the rule despite this rapidly approaching deadline.
If you’re regulated by the SEC, you know that compliance keeps your doors open. To put it simply, you cannot afford a violation of any rule or regulation. And while there are other measures your firm can take to protect itself from violating the new marketing rule, automation is a critical tactic to ensure effective, efficient, documented adherence.
And that’s where we can help. The latest update to the NRS ComplianceGuardian platform includes a Marketing Review module.
As an add-on or standalone module, the NRS ComplianceGuardian Marketing Review module can help your firm meet the updated requirements in accordance with the amended SEC Marketing Rule (206(4)-1). Specifically, this new module will guide you step-by-step through the marketing review process, offering guidance on required corrections and required books and records. Because in the end, we could all use a little help, especially when it comes to avoiding violations of the new marketing rule.
Top five ways the NRS ComplianceGuardian Marketing Review module can help your firm adhere to the new marketing rule
Are you ready to talk specifics? The NRS ComplianceGuardian Marketing Review module will allow users to:
1.Create a review and upload supporting files.
The SEC’s new marketing rule requires firms to provide certain supporting documentation as a part of the marketing review process. NRS ComplianceGuardian Marketing Review module will guide users, one step at a time, through this process. As a part of that guidance, the module will prompt users to upload any required documents for books and records.
Bonus: To help firms avoid violations, the module will also immediately flag items that need correction, so users can make the necessary corrections in a timely manner.
2. Create extensive checklists to ensure rule requirements are met.
As users move through the application, they can create extensive checklists as extra assurance that they’ve met the requirements for the new marketing rule.
3. Flag items for correction and track resolutions
NRS ComplianceGuardian Marketing Review module will immediately flag items that need correction or are inconsistent with the new marketing rule. When an item is flagged, guidance is provided to solve the conflict and track the resolution.
4. Flexible workflow
Marketing reviewers can send materials to anyone in the organization for edits or senior members for approval without needing to set up a custom workflow.
5. Archive all content processed for firm reporting.
The SEC’s new Marketing Rule requires extensive documentation. Once a new version of a document is uploaded to the system, the prior version is automatically archived with all supporting documentation, read-only checklists, comments and flagged items. Additionally, the recorded reviewers and approvers of the documents are archived as well.
Users can still access archived items and use them as a means of tracking changes and remaining accountable to the new marketing rule. If their firm is suspected of violating the new marketing rule, users may opt to use the archived items as a means of record-keeping to prove their compliance with the rule.
Adjusting to a new regulation can sometimes be stressful. Looking for additional support as you implement the new SEC Marketing rule?
Find out how NRS solutions can help your firm implement effective policies and procedures to comply with the SEC’s Marketing Rule.