Series 66: 9.1.7.1 Testimonials For Investment Advisers

9.1.7.1  Testimonials for Investment Advisers

Investment advisers and their representatives are generally prohibited from advertising testimonials or soliciting their clients for testimonials. In 2014, however, the SEC released new guidance which allows IAs and IARs to feature public testimonials on their own social media sites that have appeared on third-party social media sites, such as Yelp. This is allowed only if all testimonials about the IA or IAR on the site are included and the site is independent from the IA or IAR. In this case, the word testimonial includes both positive and negative experiences with an adviser. The IA or IAR must not have any ability to influence the commentary on the third-party site. If the IA or IAR posts commentary on the site or influences commentary in any way, posting the testimonial would be prohibited. Also, if an IA or IAR has paid for the commentary, it cannot be used. Ratings from the third-party site may also be posted as long as the third party developed the rating system rather than the IA or IAR.

The SEC has also said that when IAs direct customers to their own social media sites (i.e., “Check us ou