SEC member: Advertising rule overhaul may be too vague

The agency released the proposed amendments in November, marking the first attempt to update the requirements since 1961. Under the proposed rule, the SEC would allow advisers to post testimonials, endorsements and third-party ratings on social media. The effort to bring adviser advertising regulations into the internet era was mostly welcomed by adviser trade associations. But in comment letters last month, they also expressed concern that it was too expansive and unclear in certain areas. SEC commissioner Allison Herren Lee expressed concern that the proposal’s principles-based approach would lead to compliance uncertainty.

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