Marketer's Perspective on Investment Marketing Compliance

Marketer’s perspective on investment marketing compliance

My colleagues in investment marketing and writing roles were generous with their feedback on my draft of “6 tips to keep your compliance officers happy.” One of them wrote a reply that stands on its own. I’m happy that I received permission from that marketer to publish that reply. It’s anonymous to avoid the step of going through compliance review.

A marketer’s perspective on investment marketing compliance

Here are a few reactions to your post from the perspective of a marketer, which is somewhat broader than that of a writer.

Respect matters

Your post makes several valid suggestions about building a strong relationship. To me the most important one is about mutual respect.

Because Compliance and Marketing have different jobs to do, their work can seem to be at cross purposes. Compliance’s job is to protect the firm, to keep it out of trouble. While Compliance may strive to stay under the radar, that is the opposite of what a marketer does. A marketer’s job is to call attention, which by definition requires doing something different, being unlike the others.

You and I, and the readers of your blog, are likely familiar with situations when the relationship has devolved—Compliance complains of Marketing trying to get away with something while Marketing blames its ineffectiveness on the clichéd “Sales Prevention Department.” This reflects laziness on the part of both.

What works is when Compliance and Marketing each brings their best. I like the idea of trusting Compliance to include them early in a new initiative, and it’s a beautiful thing when, consulted early, Compliance can collaborate and provide insight beyond the line editing of copy. This assumes that Compliance recognizes Marketing as being thoughtful, prepared, and generally aware of the guardrails (what you detail in your post)—and yet still capable of original thought.

Paths of junior marketers

I’ve seen junior marketers go a few directions after being introduced to the rigors of Compliance review:

  • There are those who rebel. They won’t work for an asset manager long.
  • At the other end of the spectrum: Those who offer no fight, they can’t and won’t defend how they’ve presented something. They roll over and the result is the marketing communications are written by Compliance officers.
  • Then, weirdly, there are those who take it upon themselves to become so proficient in the rules that they become quasi-Compliance experts themselves. Over time, their work becomes bland, colorless and designed to do little more than breeze through Compliance review.

None of the above leads to effective marketing, in my opinion.

Be effective marketers

There’s no question who has the power in the Compliance/Marketing dynamic, but I like to see the marketers who find a way to work with Compliance while resisting the urge to capitulate.

We focus on Compliance because they’re who controls whether our communications get out the door. But let’s not mistake them as the client. Compliance’s concern is the regulators, and we all accept that as their role. (In fact, years ago an academic study found that regulated businesses overall think the regulator is their customer.)

But while a clean FINRA letter is important, it’s not the only hurdle an asset management marketer needs to clear—there’s the ongoing need to attract attention, to persuade, to convert clients and prospects. Marketing still needs to do marketing, which requires a certain stamina that extends even beyond the Compliance relationship-nurturing you describe in your post.

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