Indyfin Blog The Value of Third-Party Reviews: Google, Facebook

Investment advisors registered with the SEC are now allowed to feature client testimonials and third-party endorsements as a component of their marketing campaigns. This change follows the Securities and Exchange Commission's (SEC) passage of the new marketing rule, which clarifies the rules about advertising. Under the new SEC marketing rule, you can now include this type of information in your marketing materials and on your website as long as you comply with all of the rule's conditions.As a registered investment advisor, you are required to disclose whether the person providing the endorsement or testimonial has received compensation, whether they have any material conflicts of interest, and whether they are one of your clients. Third-party reviews, however, include unsolicited feedback provided by reviewers on sites such as Google and Facebook. While such reviews are valuable to investment advisors, they need to tread these platforms with caution for several reasons as discussed below.