Regulatory Round-Up February 2026

February Focus: Marketing Rule Discipline & ADV Season Readiness

Howdy, February is a good month to tighten the reins.

With the ADV Annual Amendment deadline just around the bend and the SEC keeping a close eye on the Marketing Rule, now is the right time to make sure your firm’s marketing, disclosures, and day-to-day practices are all riding in the same direction.

A recent SEC Risk Alert underscores what many advisers are already seeing in exams: marketing and communications remain a high-priority focus—and small gaps can quickly turn into exam findings.

Marketing Rule & SEC Exam Trends: What’s Drawing Attention

In December, the SEC issued a Risk Alert highlighting common deficiencies observed during adviser exams, many of which tie directly to marketing and communications. Areas receiving particular scrutiny include:

• Inaccurate or incomplete disclosures in marketing materials
• Testimonials, endorsements, and third-party ratings missing required disclosures
• Inconsistencies between marketing content, Form ADV disclosures, and actual firm practices

Examiners aren’t just reading what’s written—they’re evaluating whether firms have reasonable supervision, controls, and documentation supporting their marketing activity.

In other words, it’s not enough for disclosures to exist. They have to be accurate, consistent, and backed by process.

Bringing Marketing Back Under the Code of Ethics

Marketing and social media oversight shouldn’t roam free.

The SEC expects these activities to be addressed within your Code of Ethics and supervisory framework, just like trading activity and personal securities transactions. When firms treat marketing as a standalone function—outside compliance controls—it’s often where gaps appear.

The good news? When issues are identified, regulators tend to look favorably on firms that:

• Correct the issue promptly
• Document the response
• Strengthen controls to prevent recurrence

Clean-up counts—especially when it’s thoughtful and well-documented.

ADV Annual Amendment: Keep It Moving

With the ADV Annual Amendment deadline next month, February is the ideal time to make steady progress—without a last-minute scramble.

To keep things organized, we recommend using our new True West technology HERDWARE to complete this year’s ADV Checklist. A structured approach helps ensure disclosures align with:

• Current marketing practices
• Actual services and fee arrangements
• How the firm truly operates day to day

Consistency is the name of the game.

Looking Ahead

Throughout 2026, we’ll continue delivering practical guidance, real-world exam insight, and new tools—including True West’s proprietary software HERDWARE—to help you stay prepared and exam-ready.

Here’s to keeping things clean, consistent, and well-documented.