Sec Marketing Rule

SEC Marketing Rule — Advertising and Testimonials for Investment Advisers Exam: CFP — Certified Financial Planner Chapter: Ch01 — Professional Conduct and Regulation Rule: Investment Adviser Marketing Rule (Release No. IA-5653) Effective Date: November 4, 2022 (full compliance required) Replaces: Old advertising rule (Rule 206(4)-1) and solicitation rule (Rule 206(4)-3) Last Updated: 2026-06-26 --- ## Key Takeaways - The SEC's new Marketing Rule (effective November 4, 2022) replaced the decades-old advertising ban on testimonials and endorsements for registered investment advisers (RIAs). - Testimonials and endorsements are now permitted — with required disclosures. - Third-party ratings (e.g., "Best Financial Advisers" lists) are permitted with conditions. - Hypothetical performance advertising is permitted but subject to strict rules. - The rule consolidated two old rules (advertising + solicitation) into one. - CFP practitioners who are also registered as RIAs must comply with this rule in their marketing. --- ## Background: Why This Matters The old SEC advertising rule (in place since 1961) prohibited registered investment advisers from using: - Testimonials from clients - Endorsements from third parties - Past specific recommendations This rule was considered outdated in the social media era, where reviews and testimonials are standard. The new Marketing Rule replaces it with a principles-based framework allowing these practices with appropriate safeguards. CFP Exam Tip: Any content stating that "RIAs are prohibited from using client testimonials" is outdated. As of November 2022, testimonials and endorsements are permitted with proper disclosures. --- ## What the New Marketing Rule Allows (With Conditions) ### Testimonials (from current clients) Permitted — a current client may speak positively about their experience with the adviser, subject to: 1. Clear and prominent disclosure that the person is a…