In a significant shift since 2020, financial advisers can now utilize written recommendations from clients in their marketing efforts, per updated SEC guidelines. This presents a unique way for advisers to distinguish themselves in a crowded market. However, there are strict rules regarding the collection and usage of these advocacy statements to maintain compliance. The article outlines the categories of testimonials and endorsements, emphasizing the necessity for financial advisers to navigate the collection and validation processes diligently, ensuring they align with regulatory standards.
Until 2020, financial advisers could not publicly use written recommendations in marketing; new SEC rules allow them to leverage client advocacy statements meaningfully.
Collecting, validating, and obtaining compliance approval for advocacy statements isn't straightforward and may vary across firms, making it critical for advisers to follow established guidelines.
Collection
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