How does the SEC define "advertisement" for investment advisers?

The definition of "advertisement" according to the SEC for investment advisers encompasses any promotional communication that is intended to solicit new clients. This includes a broad range of materials such as brochures, websites, social media posts, and other forms of outreach that present information about the adviser's services, performance, or investment strategies to prospective clients. The focus here is on the intent to attract and engage potential customers, which is vital for regulatory scrutiny since advertisements can significantly influence an investor's decision-making process.

In contrast, internal communications, financial transactions, or discussions regarding firm policies do not fit the SEC's definition of advertisement, as they do not aim to promote the firm’s services to potential clients. Understanding this distinction is crucial for compliance purposes, as it helps investment advisers to appropriately navigate the regulatory landscape surrounding marketing practices and ensure they meet the regulatory standards set forth by the SEC.