SEC Adopts Modernized Marketing Rule for Investment Advisers

In a December 22, 2020 release, the SEC adopted amendments to create a single rule that will replace the current advertising and cash solicitation rules under the Investment Advisers Act of 1940.  The amendments relate primarily to Rule 206(4)-1 and Rule 206(4)-3, which have remained largely unchanged since their adoptions decades ago and will now be merged into a single marketing rule under Rule 206(4)-1, as amended.  The amendments have important implications for all investment advisers, including private equity and other private fund managers, particularly with respect to presentation of performance and solicitation activities.