{"type":"practice_guide","title":"SEC Marketing Rule for Advisors: Testimonials, Ratings and Performance","lead":"As of Oct 20, 2026, the SEC Marketing Rule (Rule 206(4)-1) has applied to SEC-registered advisers since its Nov 4, 2022 compliance date, and the SEC's Division of Examinations reported on Dec 16, 2025 that the most common testimonial and endorsement failure was not giving the required disclosures at the time the testimonial or endorsement was disseminated.","as_of":"2026-10-20","facts":{"summary":"Rule 206(4)-1 in plain words: testimonials, endorsements, third-party ratings, performance, social media, recordkeeping and FINRA Rule 2210.","key_facts":["The rule applies to advisers registered or required to be registered with the SEC; it took effect May 4, 2021 with a compliance date of Nov 4, 2022.","Compensation of $1,000 or less in the preceding 12 months is de minimis for testimonial and endorsement purposes.","A third-party rating needs clear and prominent disclosure of the date it was given and the period it covers, who created and tabulated it, and whether the adviser paid for it.","Gross performance may be shown only with net performance of at least equal prominence, and portfolio performance must cover one, five and ten years."]},"sources":[{"url":"https://www.sec.gov/resources-small-businesses/small-business-compliance-guides/investment-adviser-marketing","checked":"2026-10-20","label":"U.S. Securities and Exchange Commission: Small Entity Compliance Guide: Investment Adviser Marketing"},{"url":"https://www.law.cornell.edu/cfr/text/17/275.206(4)-1","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.206(4)-1, investment adviser marketing (the Marketing Rule)"},{"url":"https://www.sec.gov/files/exams-riskalert-mrkt-rule-2512-508.pdf","checked":"2026-10-20","label":"U.S. Securities and Exchange Commission, Division of Examinations: Risk Alert: Additional Observations Regarding Advisers' Compliance with the Advisers Act Marketing Rule"},{"url":"https://www.sec.gov/files/rules/final/2020/ia-5653.pdf","checked":"2026-10-20","label":"U.S. Securities and Exchange Commission: Investment Adviser Marketing, Release IA-5653 (adopting release)"},{"url":"https://www.sec.gov/rules-regulations/staff-guidance/division-investment-management-frequently-asked-questions/marketing-compliance-frequently-asked-questions","checked":"2026-10-20","label":"U.S. Securities and Exchange Commission: Marketing Compliance Frequently Asked Questions (Division of Investment Management)"},{"url":"https://www.law.cornell.edu/cfr/text/17/275.204-2","checked":"2026-10-20","label":"Legal Information Institute, Cornell Law School: 17 CFR 275.204-2, books and records to be maintained by investment advisers"},{"url":"https://www.finra.org/rules-guidance/rulebooks/finra-rules/2210","checked":"2026-10-20","label":"FINRA: FINRA Rule 2210, Communications with the Public"},{"url":"https://www.finra.org/rules-guidance/notices/17-18","checked":"2026-10-20","label":"FINRA: Regulatory Notice 17-18, guidance on social networking websites and business communications"}],"related":[{"title":"Advisor Capacity Calculator: How Many Households Can You Serve?","url":"https://advisoriq.com/practice/calculators/advisor-capacity/"},{"title":"Advisor Fee Revenue Calculator: AUM Fee Schedule vs Flat Fee","url":"https://advisoriq.com/practice/calculators/fee-revenue/"},{"title":"How to Start an RIA: SEC vs State Registration","url":"https://advisoriq.com/practice/guides/how-to-start-an-ria-sec-vs-state-registration/"},{"title":"How to Price Advisory Services: Fee Schedules and Pricing Models","url":"https://advisoriq.com/practice/guides/advisor-fee-schedules-and-pricing-models/"},{"title":"Hiring Your First Advisor or Operations Hire: Roles, Licensing and Structure","url":"https://advisoriq.com/practice/guides/hiring-first-advisor-or-operations-hire/"},{"title":"How to Build an RIA Compliance Program: Rule 206(4)-7, CCO and Annual Review","url":"https://advisoriq.com/practice/guides/compliance-program-for-a-new-ria/"},{"title":"Legal Essentials for an Independent RIA: Entity, Advisory Agreement and Insurance","url":"https://advisoriq.com/practice/guides/legal-essentials-for-an-independent-ria/"},{"title":"How to Choose an RIA Custodian: What Custodians Do and What to Ask","url":"https://advisoriq.com/practice/guides/choosing-an-ria-custodian/"},{"title":"Financial Advisor Technology Stack: What You Need, How It Connects and How to Budget","url":"https://advisoriq.com/practice/guides/advisor-technology-stack/"},{"title":"RIA Cybersecurity: Regulation S-P, Regulation S-ID and Practical Controls","url":"https://advisoriq.com/practice/guides/ria-cybersecurity-and-client-data-protection/"},{"title":"Marketing for Financial Advisors: How to Attract Clients","url":"https://advisoriq.com/practice/guides/marketing-for-financial-advisors/"}],"notes":["Educational, not legal, tax or investment advice.","Practice management content is not eligible for CFP Board CE. CFP Board plans to allow up to five hours of it per cycle once its Q4 2027 changes take effect."],"url":"https://advisoriq.com/practice/guides/sec-marketing-rule-for-advisors/","citation":"AdvisorIQ, as of 2026-10-20. https://advisoriq.com/practice/guides/sec-marketing-rule-for-advisors/","license":"https://advisoriq.com/license/","publisher":"AdvisorIQ, independent education for financial advisors","disclaimer":"Summaries of rules set by designation bodies and regulators, which have the final word."}