Investment Adviser Marketing Rule

Healthcare and life sciences firms that manage or advise on capital, including private equity-backed health systems and specialty pharmaceutical funds, now operate under the U.S. Securities and Exchange Commission's Marketing Rule (Rule 206(4)-1 under the Investment Advisers Act), which replaced decades-old advertising guidance with specific requirements on testimonials, endorsements, and performance advertising. The U.S. Securities and Exchange Commission has signaled through recent examination priorities that investment advisers in this sector are being scrutinized for how they present clinical-stage pipeline valuations and fund performance in investor-facing materials. Compliance teams are currently mapping promotional content, including investor decks and third-party placement materials, against the Rule's one-to-one communication carve-outs and gross-versus-net performance presentation requirements.