RIA Glossary / Advertising & Marketing Compliance

SEC Marketing Rule (Rule 206(4)-1)

Quick Answer
The SEC Marketing Rule (Rule 206(4)-1) is the regulation governing how registered investment advisers can advertise their services, including rules on testimonials, endorsements, third-party ratings, and performance results. It replaced the SEC’s previous separate advertising and cash solicitation rules in 2021.
Reviewed by Sam Carter, Director of Registration Services
Last reviewed September 19, 2026

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.

At its core, the rule prohibits advertisements that are false or misleading, and it sets specific conditions under which advisers can use testimonials, endorsements, third-party ratings, and performance data. Firms are required to have a documented review and approval process for marketing materials before they go out, and to keep records showing that process was followed.

Why it Matters

Marketing Rule violations are a frequent source of SEC enforcement actions and deficiency letters, particularly around unsubstantiated performance claims and improperly disclosed testimonials. A firm’s written policies and procedures need to specifically address marketing review, not just reference “advertising” in general terms.

Frequently Asked Questions

Does the Marketing Rule apply to social media posts?

Yes — any public-facing communication about advisory services, including LinkedIn posts and firm social accounts, falls under the rule’s advertisement definition.

What happens if my firm violates the Marketing Rule?

Violations can result in deficiency letters, enforcement actions, fines, and reputational damage; the SEC has issued multiple Marketing Rule-specific enforcement sweeps since 2021.
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Related Terms

Regulation S-P

What Is Regulation S-P? Regulation S-P requires two main things: a privacy notice given to clients

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