Your First Marketing Campaign Under the New SEC Marketing Rule

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It was 40 years in the making, but the deadline for the new SEC marketing rule is finally upon us. It introduces many exciting opportunities for financial advisors. It also brings tremendous uncertainty around how to best take advantage of the new regulations.

Testimonials and endorsements

One of the biggest changes in the updated rule is allowing the use of testimonials and endorsements in marketing efforts. The unified SEC marketing rule does a detailed job of defining what is a testimonial and what is an endorsement, and it adds a considerable language around conditions that must be satisfied if advisors want to use them in their marketing efforts.

How can advisors and their marketing teams decide how to proceed?

In any other industry, consumers rely heavily on online ratings and reviews to inform their purchases and life decisions. In 2021, 77% of consumers reported ”always” or ”regularly” reading online reviews when browsing local businesses. The five-star rating and review format is immediately recognizable to consumers, and they place tremendous value on having the voice of other consumers represented when important decisions are made.