SEC Marketing Rule

Marketing Rule & Compliance Guide for RIAs

How the SEC Marketing Rule impacts advisor marketing—and how Poseidon designs content so you stay compliant.

Under the SEC Marketing Rule (effective since late 2022), any public or semi-public communication you use to promote advisory services — from your website to social posts, emails, testimonials, or awards — counts as an “advertisement” under SEC rules.

That means (a) you must avoid misleading or unsubstantiated claims, (b) you must include proper disclosures if you use testimonials, endorsements, or third-party ratings, and (c) you must keep full records of every message and marketing asset.

Testimonials now allowed

With proper disclosures and compliance

Third-party ratings

Permitted with methodology disclosure

Endorsements allowed

Clear disclosures required for compensation

What changed under the Marketing Rule

The SEC loosened many restrictions and created new compliance requirements in the same stroke. Here is where the line sits.

Now allowed, with guardrails

Client testimonials & endorsements

Client testimonials are allowed, as long as you include clear disclosures about compensation, conflicts of interest, and whether the experience is representative.

Third-party ratings & awards

Use ratings from third parties when the rating methodology is reasonable and disclosures are clear.

Performance information

Share performance or hypothetical performance with full context: net and gross where required, realistic assumptions, and disclosures.

Social media marketing

Clear guidance on digital marketing, including LinkedIn posts and other social content.

Still risky, requires care

Cherry-picking success stories

Using only best-case stories or "top client wins" without balanced representation.

Overpromising returns

Guaranteeing results or suggesting unrealistic investment outcomes.

Using client data publicly

Sharing identifying client information publicly violates privacy (Reg S-P concerns).

Personalized advice in DMs

Sending messages that sound like personalized investment advice without proper disclosures.

No record keeping

Failing to retain and archive marketing materials violates books & records obligations.

Most advisors don't know the rules changed.

Many financial advisors still think testimonials are completely banned. They're not. Under the current SEC Marketing Rule, testimonials and endorsements are permitted with proper disclosures, and that is a real opportunity if you use them compliantly.

How Poseidon Stays Compliance-First

A compliance-aware, audit-ready partner — not another marketing vendor.

Pre-Approved Content Frameworks & Templates

Educational, balanced content with no hyperbole. All templates designed with compliance in mind from day one.

Testimonial & Endorsement Workflows

Built-in disclosure prompts, conflict questionnaires, and "not representative" disclaimers automatically included.

Third-Party Rating Integration

Methodology review and transparent disclosure tags for any third-party ratings or awards.

Balanced Performance Content Support

Risk/context language, net/gross where needed, proper disclosure blocks for any performance claims.

Privacy Protection & Anonymization

No use of real client identifying information unless explicit consent and compliance check completed.

Archiving & Audit Trail

All content — posts, emails, sequences — stored with version history, timestamps, exportable for review or SEC audit.

Compliance-Review Handoff Model

1

We Create

Poseidon delivers compliant-ready content

2

Your CCO Approves

Your compliance officer reviews and signs off

3

We Archive

Everything logged, timestamped, and audit-ready

How to Work With Your CCO / Internal Compliance

A simple workflow that gives advisors confidence and keeps compliance teams happy.

01

Poseidon Creates Draft Content

We generate content using pre-approved templates with compliance safeguards built in.

02

Review Pre-Approved Templates

Advisor and CCO review templates with all required disclosures already included.

03

CCO Approves

Your Chief Compliance Officer signs off on content before publication.

04

Poseidon Publishes & Archives

We publish the approved content and automatically archive all assets with timestamps.

05

Periodic Compliance Reviews

Internal reviews and record-keeping maintained according to SEC requirements.

Clear Ownership

Everyone knows who does what

Audit-Ready

Full documentation and archives

Peace of Mind

Sleep well knowing you're compliant

Common Questions & Concerns

What advisors and CCOs ask us most frequently.

Can we use client testimonials now?

Yes! Under the current SEC Marketing Rule, client testimonials are permitted. However, you must include clear disclosures about: (1) whether the person was compensated, (2) any conflicts of interest, (3) whether the experience is representative of all clients, and (4) the relationship to the adviser.

Can we share third-party rankings or awards?

Yes — but you must disclose the full methodology and any compensation or affiliation arrangements. The rating must be from a credible third party with reasonable methodology. Poseidon helps you include proper disclosure language automatically.

Can we send personalized DMs or emails to prospects?

Yes — but the copy must avoid sounding like personalized investment advice unless you're prepared to treat it as such. It's safer to keep outreach at the educational/value-offer level rather than specific recommendations. Poseidon templates are designed to stay in the compliant zone.

What about performance numbers or past returns?

Performance information is allowed only if properly net-adjusted, fully disclosed, and not cherry-picked. You must show both net and gross returns where required, include all required disclosures, and present realistic assumptions. Never guarantee future returns.

How long do we need to archive marketing content?

All advertisement materials must be retained per SEC Rule 204-2 (books & records rule). Generally, this means 5 years, with the first 2 years in an easily accessible place. Poseidon automatically archives all content with timestamps for easy audit compliance.

Do social media "likes" or "shares" count as endorsements?

Potentially, yes. If you "like" or share a client's positive post about you, it could be viewed as using that content as an implicit endorsement. Best practice: have a policy on social media engagement and document your approach.

What happens if we delete a negative comment?

Deleting negative comments can raise concerns about selective disclosure or creating a misleading impression. The SEC expects balanced presentation. Better approach: address concerns professionally or have a documented policy on comment moderation.

Does FINRA have additional rules beyond the SEC Marketing Rule?

Yes. If you're a hybrid adviser or have FINRA oversight, you also need to comply with FINRA Rule 2210 on communications with the public, which includes pre-approval requirements for "retail communications" (posts visible to 25+ retail investors). Poseidon can help track this.

Important Legal Disclaimer

This page is for educational and informational purposes only. Poseidon is not your law firm, compliance department, or legal counsel. The information provided here is not legal advice and should not be relied upon as such.

Every advisory firm has unique compliance requirements based on their registration status, business model, state regulations, and firm-specific policies. Before implementing any marketing strategy or relying on any statements made on this page, you must:

  • Consult with your own legal and compliance counsel
  • Review your firm's compliance manual and policies
  • Obtain approval from your Chief Compliance Officer (CCO)
  • Verify compliance with all applicable federal and state regulations

The SEC Marketing Rule and related regulations are complex and subject to interpretation. What is compliant for one firm may not be compliant for another. Poseidon provides tools and best practices, but ultimate responsibility for compliance rests with you and your firm.

For official guidance, refer to:

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