Advertising

Unless you were born into a well-connected family, clients won’t likely just fall into your lap. You’re going to have to market and advertise yourself and your firm to make a living. Of course, that means that your state securities administrator is going to have some standards about what you put into print and the documentation you need to provide to your clients and prospects. And keep in mind that in the securities industry, an advertisement is any communication about investment services that is addressed to more than one person. That means that websites, social media forums, emails, printed reports, and press releases are all considered to be advertisements.

As with everything else, the core of all rules about advertising and marketing comes down to two things every client and prospect is entitled to honesty and transparency.

Specifically prohibited in advertisements for investment advisers and investment adviser representatives are:

• • Testimonials regarding services provided by an investment adviser or its representatives unless they are taken from an independent third-party website; these testimonials are subject to certain restrictions described below (Broker-dealers are permitted to use testimonials, which are also subject to certain restrictions.)
• • References to past recommendations, unless the IA or IAR provides a list of all recommendations he has made for at least 12 months, as well as a statement that any past success is no guarantee of future results
• • Any statements that would communicate or imp