The Securities and Exchange Commission (SEC) has published a Risk Alert providing additional observations on investment advisers' compliance with the Advisers Act Marketing Rule. The alert specifically addresses areas where advisers may fall short, including the satisfaction of disclosure requirements and oversight practices related to testimonials and endorsements, as well as due diligence and disclosure obligations concerning third-party ratings.

This guidance is critical for financial advisers and fund managers to review their current compliance programs. Regulated entities should assess their adherence to the Marketing Rule's provisions on testimonials, endorsements, and third-party ratings, and update their policies and procedures as necessary to ensure full compliance and avoid potential enforcement actions. While this is a Risk Alert and not a new rule, it signals areas of focus for SEC examinations.