RegTech provider RegEd has expanded its AI-powered Advertising Review solution to support advertising compliance for investment advisers under the U.S. Securities and Exchange Commission’s (SEC) Marketing Rule.
The company said the latest update extends its Eddie AI Compliance Assistant beyond FINRA advertising requirements to include SEC Rule 206(4)-1, as well as additional SEC advertising rules covering investment companies and fund marketing materials.
According to RegEd, the tool can identify potentially problematic language, missing disclosures, and inconsistencies before marketing materials are submitted for compliance review. It also provides reviewers with AI-generated risk flags and disclosure guidance during the approval process.
“The Marketing Rule fundamentally changed the compliance landscape for investment advisers,” said Ethan Floyd, Chief Product Officer at RegEd. “By extending Eddie to SEC requirements, we’re giving investment adviser firms intelligence built specifically for their regulatory environment.”
RegEd said the expanded coverage is intended to help firms that operate as both broker-dealers and registered investment advisers, allowing them to review marketing materials under both FINRA and SEC requirements using the same platform.
The SEC’s Marketing Rule came into force in 2022, replacing decades-old advertising and solicitation rules for registered investment advisers.
Since then, compliance technology providers have been expanding their AI capabilities as firms look to automate advertising reviews and meet growing regulatory expectations around digital marketing and investor communications.
