09.13.2023
The SEC’s recent marketing sweep exam has made one thing crystal clear: compliance with the Marketing Rule (Rule 206(4)-1) is not a “set it and forget it” job. Just because content was compliant when it was published doesn’t mean it is evergreen. Compliance requirements change, and your content needs to stay current. As the SEC focuses on how firms substantiate their claims and keep their materials up-to-date, here are two key lessons from the sweep. Fortunately, with Skematic’s marketing review module, staying on top of these requirements is easier than ever.
Takeaways:
- Substantiate Your Claims: Always Show Your Work!
One of the most important takeaways from the SEC’s exam is the need for firms to substantiate their marketing claims. Whether it’s a client testimonial or a statement about the success of a particular strategy, the SEC expects firms to back up every assertion they make.
In the fast-paced world of marketing, tracking the rationale behind your compliance approvals can get messy. How do you ensure that your data, endorsements, or performance stats are still accurate? More importantly, how do you prove it?
Enter Skematic. With our platform, you can link supporting evidence directly to your marketing materials. Every piece of content reviewed by your compliance team is tied to a clear audit trail, showing the exact reasoning behind each approval. From documentation proving performance figures to verifying that a client testimonial is still valid (e.g., confirming the client remains a client, which was an issue in the sweep exam), Skematic ensures that your materials are backed by solid proof.
Here’s why this matters: if the SEC ever questions a specific claim, you’ll have the necessary evidence at your fingertips to demonstrate compliance. You’ll be able to show not only what was approved but also why—complete with dates and supporting documents.
- Keep It Current: Marketing Materials Need to Stay Fresh
Another critical insight from the SEC’s sweep is the importance of keeping your marketing materials up-to-date. What may have been compliant when first approved might no longer be accurate over time. Market conditions change, clients move on, and strategies evolve. If your marketing content remains static while everything else shifts, you could find yourself out of compliance without realizing it.
Skematic offers a solution to this issue by allowing firms to set personalized alerts and regular review schedules for their marketing materials. This means your compliance team will receive reminders to review and refresh content, preventing outdated information from slipping through the cracks—an issue highlighted in the SEC sweep.
Instead of letting your marketing content gather dust, Skematic encourages a proactive approach. Marketing materials aren’t a one-time deal; they need routine check- ups to ensure they reflect current facts and stay compliant.
With Skematic, you can keep every piece of content fresh and aligned with the latest regulatory requirements. Whether it’s through a routine review cycle or a triggered alert when something changes, the platform helps you stay ahead of any potential compliance risks.
Don’t let your marketing materials lag behind. Set up a routine to review and refresh them—your compliance team (and the SEC) will be grateful.