Lyrical Marketing Strategy

Draft // 10.14.2025

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Risk & Compliance Framework

All marketing activities will be routed through compliance review to ensure adherence to SEC Marketing Rule 206(4)-1, FINRA regulations, and industry best practices. Below is our comprehensive risk mitigation framework that addresses key compliance triggers across all proposed strategies.

Risk & Compliance Matrix

Governance

Route all creative through compliance queue; document approvals.

Strategy 1 - Brand-Only Channels

Restrict to awareness messaging; no fund performance.

Digital Funnels

Maintain "fair and balanced" creative + compliance copy template for retargeting and search.

Record Retention

Store ad versions and approval logs for minimum 5 years (SEC Rule 204-2).

Risk / TriggerCompliance Rule(s)Solution / MitigationExample / Industry Handling
Performance Claims / Past ReturnsSEC Marketing Rule 206(4)-1 (Performance Presentation)
  • • Present both gross and net returns over identical timeframes.
  • • Include relevant benchmarks.
  • • Disclose that past performance is not indicative of future results.
  • • Keep data substantiation records.
Ariel Investments includes benchmark and 1/3/5/10Y returns with "Past performance does not guarantee future results" in every campaign.
Extracted or Subset PerformanceSEC Marketing Rule FAQ2s (Mar 2025 update)
  • • If highlighting a subset (e.g. "top holdings"), also show full strategy performance equally.
  • • Consistent methodology; disclose criteria.
  • • Show gross + net versions.
Baron Funds shows sector-specific extracted returns with side-by-side composite performance and detailed disclosure.
Hypothetical / Backtested PerformanceRule 206(4)-1(d)(6)
  • • Only include if supported by internal records.
  • • Prominently disclose assumptions and limitations.
  • • Not in mass retail unless criteria met.
  • • Review for fair-balance.
PIMCO Quantitative Strategies uses modeled backtests only in gated advisor microsites with disclaimers and data appendices.
Testimonials / EndorsementsRule 206(4)-1(b)(1) – (b)(4)
  • • Written agreements for paid testimonials.
  • • Clear disclosure: compensation, conflicts, status (client or not).
  • • Vet promoters for "bad actor" status.
  • • Monitor for misleading language.
JP Morgan Private Bank uses client case-style videos labeled "Paid testimonial. Opinions are their own."
Third-Party Ratings / AwardsRule 206(4)-1(c)(1)
  • • Disclose rating methodology, time period, conflicts, any compensation.
  • • Do not imply regulator endorsement.
T. Rowe Price includes "Barron's rankings based on 5Y performance; no compensation paid" below hero creative.
Cross-Channel Inconsistency (CTV, OOH, Social)Marketing Rule general anti-fraud principle
  • • Use unified message and disclaimers across formats.
  • • Brand-only messages in short-form (CTV, elevator) units.
  • • Compliance pre-approves all creative.
BlackRock runs CTV spots with zero performance mentions—only tagline and brand positioning.
Recordkeeping / Audit TrailAdvisers Act Rule 204-2
  • • Archive all versions, approvals, timestamps.
  • • Use workflow tool or CMS for logs.
  • • Retain 5-7 years.
AllianceBernstein uses compliance tech stack (Proofpoint + Smarsh) for automatic capture and review of all ad assets.
Form ADV ConsistencyForm ADV Part 1A 5.L & Part 2A 14
  • • Ensure marketing activity aligns with ADV disclosures.
  • • Update if new media or strategies used.
  • • Avoid contradictions (e.g., claiming retail outreach when listed as institutional-only).
Neuberger Berman updated Form ADV 2024 to reference digital campaigns and social outreach programs.
Misleading or Unbalanced MessagingSEC 10b-5 / 17(a) Anti-Fraud Provisions
  • • Maintain fair and balanced tone.
  • • Include risks alongside benefits.
  • • Ban superlatives like "best," "guaranteed."
Dodge & Cox compliance reviews every ad for "balanced disclosure" before publishing thought-leadership.
Data & Privacy (HNW Targeting)CCPA, CPRA, GDPR
  • • Vet data vendors.
  • • Maintain consent or legitimate interest basis.
  • • Disclose audience targeting in privacy policy.
  • • Provide opt-outs.
Schroders US only uses privacy-certified vendors (LiveRamp Safe Haven) for audience enrichment.
Third-Party Platforms / Attribution VendorsSEC Books & Records + Vendor Oversight
  • • Contractually require audit rights, data lineage, confidentiality clauses.
  • • Keep copies of any external reports relied on for decisions.
Invesco mandates vendor due-diligence and SOC 2 reports for all analytics partners.
Retail vs Institutional SegmentationFINRA Rule 2210 (if BD involvement)
  • • Clearly classify content: retail vs institutional.
  • • Institutional content must not reach retail (controlled distribution lists).
Goldman Sachs AM maintains separate microsites and email tracks for advisor vs institutional audiences.
Promissory / Forward-Looking StatementsSEC Anti-Fraud / Marketing Rule
  • • Avoid "will outperform" or "always delivers alpha."
  • • Replace with "seeks to outperform" / "aims to."
Capital Group uses phrasing "seeks long-term value creation" consistently.
Disclosures & Risk StatementsSEC Marketing Rule 206(4)-1(a)(2)
  • • Prominent disclosures in visible font and duration (for video ≥ 3 seconds).
  • • No burying in footnotes.
  • • Align across digital and print.
Fidelity Institutional enforces a 10-second risk disclosure slide in all video ads.

Footer note: This matrix will be reviewed and updated quarterly to reflect regulatory changes and evolving best practices.

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