Can’t Talk About Your Product Yet? Some Tips On What To Say

Those pesky regulations that bar firms from touting a product or fund before its launch can be frustrating, especially when all management wants to do is scream to the world how great that new ETF is going to be. Is compliance scrutinizing everything you say?  Here’s a way to keep them happy too.

But while those SEC or FINRA restrictions may pose some momentary obstacles in promoting the firm’s creations, there are some areas that can be comfortably explored that will help pave the way for the big launch.

A firm doesn’t want to make any statement, of course, that would be considered gun-jumping as it prepares to file, or has already filed, a prospectus. So, its strategy and general philosophy, and how investors will benefit from them, are obvious starting points. A newly launched operation can also use this time to explain how management first conceived of the idea for the firm, or discuss the vision for the firm’s growth in coming years.

Beyond that, firms could focus – potentially in a Q&A format – on the professional assets of their team members, marketing their experience and how it sets them apart from competitors. Executives can showcase the years they’ve dedicated to the industry, or explore the nuances of their particular expertise. They can delve into how that stretch as an estate planner – or even that stint volunteering overseas – was a formative time, and helped shaped their understanding of their clients’ financial goals.

Firms can also respond to macro issues that relate to their fund or product without mentioning the fund or product directly. Those could include, for instance, what’s most challenging for investors now in this financial climate, the reasons why liquid alternative products have gained such traction of late, or why a particular asset class is currently resonating with investors.

In these scenarios, it’s helpful to remember a rough guideline in the financial services communications industry known as “FPPP,” which (at least by one variation) stands for Firm, Performance, Products and Process. When one of these categories, such as products, becomes off limits, it’s necessary to rely more heavily on the others. Overall, the objective should always be to convey the uniqueness of the brand and lay the foundation of the product or fund to come.