Partner, Jamie Nash provides insight in “CCOs cautioned on marketing violations following SEC alert”

December 1, 2017

Jamie Nash was quoted in an article in Fund Intelligence on November 16, 2017, about the SEC’s recent warning on common advertising-related violations. Jamie explained “The misleading selection of recommendations when [advisers show their] five best selections, and not the five worst, is often a problem advisers have when writing to investors about their performance,” said Nash. “This is not typically considered an advertisement because it is being sent to current investors, but they often send the same letters to prospective investors. Often times people don’t think about it that way. If you are writing to investors, but also may show to prospects you have to be wary.”

While showing only positive selections to current advisors might be common practice, advisors have to be careful to show potential investors both positive and negative results. Nash went on to say that the way the results are constructed needs to be explained to clients. “Often times there are assumptions clients take for granted thinking everyone should understand, but it isn’t the case. When you are using hypotheticals you have to be very careful,” cautioned Nash.

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