Compliance
What is SEC Marketing Rule (206(4)-1)?
The SEC Marketing Rule (Rule 206(4)-1 under the Investment Advisers Act) governs how registered investment advisers advertise, including the use of testimonials, endorsements, and performance claims.
The Marketing Rule replaced the SEC's older advertising and cash-solicitation rules and took full effect in November 2022. It defines 'advertisement' broadly, so most marketing content — including podcasts and social posts used to promote the advisory business — falls within it.
At a high level, the rule prohibits misleading statements, requires that material claims be substantiated, permits testimonials and endorsements subject to disclosure and oversight requirements, and sets specific standards for presenting performance. Advisers must also keep records of their advertisements.
This is general information, not legal or compliance advice. Confirm any specific practice with your firm's compliance team or counsel.
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