SEC Updates Marketing Rule and Form PF FAQs in Short Succession

On March 19, the SEC issued updates to its FAQs regarding compliance with Rule 206(4)-1 of the Advisers Act (the Marketing Rule) addressing (i) when gross and net performance are required for certain “extracted” performance, and (ii) whether certain portfolio metrics (e.g., yield, coupon rate, contribution to return, volatility, sector or geographic returns, attribution analyses and Sharpe/Sortino ratios) are performance under the Marketing Rule and, therefore, whether net calculations of such metrics are required. The updated Marketing Rule FAQs are available here.

Subsequently, on April 4, the SEC issued updates to its FAQs addressing various questions relating to recent amendments to Form PF. The original compliance date for the Form PF amendments was slated for March 12, 2025; however, in January, the SEC delayed the compliance date to June 12, 2025 — sparing many annual Form PF filers from making required adjustments until next year. The updated Form PF FAQs are available here.

Reach out if you want to discuss the SEC’s updated guidance and how it may affect your compliance obligations. We also expect to publish additional commentary on the substance of these FAQs shortly.