Zeidler Group said the SEC’s latest Marketing Rule FAQs, released last Friday, are a targeted clarification rather than a market-moving shift, and warned asset managers against “reacting” to guidance that applies only in limited, fact-specific scenarios.
Zeidler Group highlighted two areas covered by the update: the use of model fees where performance shown may not reflect the higher fees an intended audience is expected to pay, and the use of compensated testimonials or endorsements from individuals subject to certain final orders under Section 203(e)(9) of the Advisers Act.
Zeidler Group said firms should respond with context and judgement, noting that regulatory updates can appear more significant than they are and may create confusion if applied too broadly across marketing and compliance workflows.
Zeidler Group argued the challenge is intensifying as AI becomes more embedded in legal and compliance functions, making a “human in the loop” critical to ensure rules are interpreted as they operate in real-world asset management, not simply as text.
Zeidler Group pointed to its Marketing Material Review Tool (MMR-Tool), an AI-powered solution designed to assess asset management marketing materials against applicable rules, including the SEC Marketing Rule, and said it will retrain and fine-tune the tool to reflect the latest FAQs with practitioner-level nuance.
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