Compliance Review of Marketing Materials
What Is a Compliance Review of Marketing Materials? A compliance review of marketing materials is the internal process an RIA uses to check advertising content — websites, social posts, pitch decks, and client communications — against Marketing Rule requirements before it’s published or distributed. The SEC expects firms to have a documented process for this […]
Performance Advertising
What Is Performance Advertising for RIAs? Performance advertising refers to any marketing material that presents an adviser’s actual investment returns or track record. The Marketing Rule requires this data to be presented net of fees (or alongside gross figures with appropriate context), over specific time periods, and without cherry-picking favorable results. The rule prohibits presenting […]
Hypothetical Performance
What Is Hypothetical Performance Under the Marketing Rule? Because hypothetical performance can be constructed to look favorable in hindsight, the SEC requires advisers to have policies addressing the relevance of the presentation to the intended audience, sufficient information for the audience to understand the criteria and assumptions used, and disclosure of risks and limitations. For […]
Third-Party Ratings
What Are Third-Party Ratings Under the SEC Marketing Rule? Not every list or award qualifies as a compliant third-party rating. The rule requires that the rating come from an organization that provides ratings in the ordinary course of its business, using a questionnaire or clear methodology, and that isn’t controlled by or affiliated with the […]
Testimonials and Endorsements
What Are Testimonials and Endorsements Under the Marketing Rule? Before 2021, RIAs were generally barred from using client testimonials in advertising at all. The Marketing Rule reversed that position, permitting testimonials and endorsements under a defined set of conditions: clear disclosure of whether the person is a client, whether they were compensated, and any material […]
SEC Marketing Rule (Rule 206(4)-1)
What Is the SEC Marketing Rule (Rule 206(4)-1)? The Marketing Rule consolidated decades-old advertising and solicitation regulations into a single, principles-based framework. It applies to any communication an adviser makes to more than one person that offers investment advisory services — which in practice covers websites, social media, email campaigns, pitch decks, and client newsletters. […]