SEC Readies Updates to RIA Ad Rules

The "badly outdated rule" generally prevents advisors "from using communications and marketing methods that long ago became standard business practice elsewhere in the economy," she added.

In the IAA's comment letters and communications with SEC Commissioners and staff, the organization "has asked the Commission to take a principles-based approach to modernizing the rule," Barr said. "We believe the Commission should draft new regulations that are high-level and flexible enough to adapt as technology and business practices continue to evolve."

Grateful that the SEC is "finally addressing" the Advertising Rule modernization, she noted that IAA looks forward "to providing feedback on the coming rule proposal."

Dalia Blass, head of the SEC's IM Division, said earlier this year that she anticipated the division would present "recommendations for a proposal on modernizing the advertising and solicitation rules" for investment advisors soon.