Short answer
The SEC Marketing Rule (Rule 206(4)-1 under the Investment Advisers Act) governs how registered investment advisers advertise. It bans misleading claims, and it permits testimonials, endorsements, third-party ratings and performance advertising only with specific disclosures, oversight and record-keeping.
SEC Marketing Rule explained
Adopted in December 2020 with a compliance date of November 4, 2022, the rule replaced the old advertising and cash solicitation rules. It sets seven general prohibitions, such as unsubstantiated material claims and cherry-picked performance, and specific conditions for testimonials and endorsements: clear disclosure of whether the person is a client, whether they are paid, and material conflicts, plus written agreements for most paid promoters. Performance shown must meet rules on net-of-fee presentation, time periods and hypothetical performance.
Advisers must keep records of advertisements and the support for claims, which is where a CRM and approval workflow help.
How Vantage Point helps: we build marketing review and approval workflows in Salesforce and HubSpot that capture who approved what, and when, for Marketing Rule records.
Frequently asked questions
Can investment advisers use client testimonials?
Yes, since the Marketing Rule took effect, provided the required disclosures are made, the adviser oversees compliance, and paid arrangements meet the rule's conditions.
Does the Marketing Rule apply to social media and websites?
Yes. Websites, social posts, emails and other communications that offer advisory services to more than one person can be advertisements under the rule.