Shalini Kurukulasuriya, CFA and Amy Jones, CIPM
Does the Scope of the SEC Marketing Rule Extend to the Presentation of Performance Attribution?
As the deadline for compliance with the SEC Marketing Rule (Marketing Rule) draws nearer, a heightened focus in the registered investment advisor (RIA) community is needed. As of November 4, 2022, all marketing material deemed to be an advertisement must adhere to the requirements of the Marketing Rule.
Firms have been working to interpret the scope of the Marketing Rule as it applies to content in advertisements including the presentation of attribution. The Marketing Rule expressly prohibits the presentation of gross-of-fees returns if net-of-fees returns are not also presented. This has led to the question of whether net-of-fees returns or gross-of-fees returns should be the basis for the calculation of performance attribution analysis.