What the SEC's Marketing Rule actually allows you to say about client reviews
For the first time, RIAs can use client testimonials — but the SEC's own exam findings show firms getting flagged for disclosures that are technically present but not clear or in proximity.
Published September 2, 2026
For most of the industry's history, registered investment advisers couldn't use client testimonials at all — a blanket restriction meant to prevent misleading endorsements. The SEC's Modernized Marketing Rule changed that, but "allowed" and "unrestricted" are not the same thing, and a lot of firms are still operating as if the old rule is in effect out of caution, or getting the new one wrong.
What's actually permitted
Testimonials and endorsements are allowed, with disclosure requirements attached: clear identification of whether the person is a client, whether they were compensated, and (except in de minimis or affiliate cases) a written agreement with any promoter. The rule isn't a green light to publish reviews with no context — it's a structured path to using them properly.
The compliance gap between large and small firms
SEC-related survey data suggests a meaningful sophistication gap: roughly 85% of advisers managing over $100 billion in assets reported engaging in marketing activity covered by the rule, compared to about 22% of advisers managing under $100 million. Smaller firms are largely leaving this marketing latitude unused — often out of caution rather than a considered compliance decision.
What a compliant testimonial setup actually looks like
- 01Disclosure text placed directly alongside each testimonial, not behind a link.
- 02A clear, documented process for how testimonials are collected and by whom.
- 03Written agreements in place with any compensated promoter, before anything is published.
- 04A review of the whole setup against current SEC guidance before publishing — this is compliance work, not just marketing copy.
Done right, this is a real opportunity: trust is what clients say matters most (see what actually keeps a client with their advisor), and testimonials are now a legitimate way to demonstrate it — for the firms willing to set it up correctly.
Frequently asked questions
Yes — the SEC's Modernized Marketing Rule (Rule 206(4)-1) permits testimonials and endorsements for the first time, but requires specific disclosures, oversight, and in most cases a written agreement with any promoter.
A recent SEC Division of Examinations risk alert found recurring deficiencies specifically around testimonial and endorsement disclosures — including disclosures that were technically present but only reachable via hyperlink rather than clear and in close proximity to the testimonial itself, which doesn't satisfy the rule.
SEC-related survey data suggests a real gap: roughly 85% of advisers managing over $100 billion in assets reported engaging in marketing activity covered by the rule, versus about 22% of advisers managing under $100 million — smaller firms are meaningfully less likely to be using the marketing latitude the rule actually provides.