Navigating the SEC Marketing Rule (206(4)-1)
Understand testimonials, endorsements, and performance advertising under the modernized SEC Marketing Rule.
By Legal Team •
Modernizing Advisor Marketing
The SEC Marketing Rule represents the most significant change to advisor advertising in decades. Fines for non-compliance can exceed $100,000 based on recent enforcement actions.
Common Mistakes
- Using Google reviews without proper disclosures.
- Presenting gross performance without net performance.
- Failing to maintain a "reasonable basis" for material statements of fact.
Testimonial Disclosures Table
| Requirement | Description |
|---|---|
| Promoter Status | Must disclose if the promoter is a client or non-client. |
| Compensation | Must disclose if cash or non-cash compensation was provided. |
| Conflicts | Must prominently disclose material conflicts of interest. |
Tool: Marketing Rule Risk Scorer
Assess your marketing risk profile.
Assumptions: Hypothetical performance and testimonials carry the highest regulatory scrutiny.
FAQ
Can I use Yelp reviews? Yes, but only if you have control over the display and add necessary disclosures.
What about hypothetical performance? Strictly limited to specific audiences with robust disclosures and policies.
Internal Resources Matrix (20+ Links)
- SEC Registration Checklist for New RIAs
- Navigating the SEC Marketing Rule (206(4)-1)
- AUM Fee Structure Calculator
- Compliance Cost Estimator
- Breakaway Advisor ROI Calculator
- Succession Valuation Estimator
- Client Segmentation Assessor
- Portfolio Rebalancing Time Savings
- Tech Stack Budget Estimator
- Form ADV Deadline Calculator
- Cybersecurity Risk Scorer
- CRM Migration ROI
- Fee-Only Conversion Impact
- Document Retention Checker
- M&A Deal Structurer
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