For context, a case study outlines a specific decision that showcases your firm’s decision-making process in action.
However, many wealth management firms hesitate to write them due to concerns about the SEC’s stance on cherry-picking.
We understand the constant anxiety to stay on the right side of the SEC.
But ignoring this category of thought leadership materials prevents you from using a powerful tool to build credibility and trust with people.
We are not qualified legal experts. For legal advice, always consult with your Chief Compliance Officer or external counsel.
Nevertheless, this post aims to clarify best practices for writing case studies within regulatory boundaries.
Well-crafted case studies can be a cornerstone of your thought leadership strategy.
They provide transparency, build confidence, and highlight your firm’s strengths and successes.
Let’s explore best practices to write SEC-compliant case studies that resonate with your audience.
The SEC views case studies and similar portfolio performance information as “specific investment advice.” This means they are subject to the same advertising rules as any other investment advice.
Therefore, investment firms must carefully review their case study practices, particularly regarding performance disclosure.
The critical phrase the SEC uses to reference to specific investment advice is that it must be fair and balanced.
This involves considering the context of the data and the sophistication of the audience.
With this in mind, let’s explore 3 best practices to communicate case studies in a fair and balanced way.
When sharing investment advice, such as a response to a major market event, ensure you provide appropriate contextual information.
This should include the circumstances of the market event and any relevant investment constraints at the time.
This context helps investors understand the broader picture and ensures the advice is presented fairly.
Avoid presenting only profitable investments in your case studies.
If there are unprofitable investments, disclose them or present the overall performance of the investment strategy for the relevant period.
This balance is crucial to meet the SEC’s fair and balanced standard and to provide a true representation of your investment approach.
Case studies with performance information must comply with the SEC’s performance advertising restrictions.
Ensure all performance claims are accurate, substantiated, and presented in context.
Disclose the overall performance of the investment strategy for at least the period covered by the case studies.
Case studies are permitted by the SEC so long as they satisfy the fair and balanced criteria outlined in the marketing rule.
Your CCO or external counsel must always be your first port of call when deciding how best to write compliant materials.
Once you are comfortable satisfying the fair and balanced guidelines, implementing these best practices can help your firm create compelling case studies that stay on the right side of the SEC marketing rules.
Want to know more best practices to establish your firm as a thought leader? Check out our insights library here.
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