sec marketing rule

How we’re responding to the SEC’s new marketing rule

As your partner in delivering innovative SMA strategies and excellent financial service to clients, we want to update you on our efforts to respond to the U.S. Securities and Exchange Commission’s (SEC’s) new marketing rule, effective in the fall of 2022.

  • Over a year ago, a multidisciplinary group within FPI began evaluating the impact of the new marketing rule on our business. The objectives of the group are to deliver compliant, useful tools and educational references as part of our ongoing service to advisers and their clients. The group continues to meet and work weekly.
  • A letter will be sent to those firms with soliciting agreements in early October to explain our efforts and changes that will take place.
  • Upon logging in to, advisers will be asked to attest—once a quarter—that they understand that hypothetical performance materials are not to be reproduced or disseminated to clients.
  • Our Model Performance Reports, which give information on only a single account, will be discontinued. They will be replaced by Composite Reports, which look similar to the Model Performance Reports but include the 1-year, 5-year, 10-year, and/or since-inception investment performance of all similarly managed portfolios on a net-of-max-fee basis.
  • A new proposal generator has been created. This interactive investment-analysis tool produces simulations and statistical analysis using either hypothetical or composite data, at the election of the financial representative.
  • The Illustration Generator will continue to be available but only to financial representatives. It will be clearly marked “Not For Client Use.” The Illustration Generator models individual strategies and combinations of investment strategies on either an actual composite basis or on a longer-horizon hypothetical basis.
  • Hypothetical Research Reports will be available to financial representatives only, and will now be clearly marked “Not For Client Use.”

How is your firm handling the new rule? Tell us.

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Learn more about our response to the new SEC marketing rule.

Preparing for the new SEC marketing rule

Presented by
FPI’s Compliance team
Flexible Plan Investments, Ltd.
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