Published on Aug 6th, 2025 |

Common Marketing Review Mistakes and How to Improve Them: A Guide for RIAs, RICs, and Broker Dealers

Vigilant Insights

Introduction

In the ever-evolving landscape of Marketing and Advertising, SEC Registered Investment Advisers (“RIAs”), SEC Registered Investment Companies (“RICs”), and FINRA Registered Broker-Dealers face heightened scrutiny regarding advertising and promotional material.

With the SEC’s Marketing Rule (Rule 206(4)-1), enforcement actions, and FINRA’s detailed advertising guidelines, compliance failures can lead to reputational damage, regulatory penalties, and even enforcement referrals.

This Vigilant Insights release explores common marketing review missteps and offers guidance for improvement, concluding with how Vigilant helps firms navigate these complexities.

Common Marketing Review Mistakes

Common Marketing Review Mistakes

1. Inadequate Disclosures and Footnotes

  • Disclosures are a core requirement for marketing materials. Firms often fail to include clear, prominent disclosures that provide context for performance, risks, and fees. When disclosures are included, they are frequently buried in fine print or missing entirely from digital or social media posts.
  • Example Mistake: Omitting disclosure that performance is net of fees or cherry-picking the best-performing accounts without context.

2. False or Misleading Statements

  • Firms may exaggerate or misrepresent past performance, investment strategies, or qualifications. The SEC’s Marketing Rule strictly prohibits such statements.
  • Example Mistake: Using terms like “guaranteed returns” or “low risk” for products that are market-exposed.

3. Improper Use of Hypothetical and Model Performance

  • Presenting hypothetical, model, or back-tested performance without proper explanation or compliance with regulatory requirements is a frequent error. The SEC requires specific disclosures for hypothetical performance under the Marketing Rule.
  • Example Mistake: Including model performance without explaining assumptions, limitations, or client relevance.

4. Testimonial and Endorsement Violations

  • The new Marketing Rule allows the use of testimonials and endorsements under specific conditions. However, many Firms misuse these tools by failing to disclose whether the promoter is compensated or omitting conflicts of interest.
  • Example Mistake: Featuring a client endorsement on a website without required disclosures or oversight.

5. Inconsistent or Unreviewed Social Media Content

  • Many Firms neglect to apply Marketing Review procedures to social media, leading to inconsistent messages or non-compliant content being posted by representatives.
  • Example Mistake: An advisor shares performance claims on LinkedIn without any compliance review or disclosures.

6. Lack of Archiving and Review Documentation

  • Failure to document the Marketing Review process and retain approved materials is a recurring deficiency noted in SEC and FINRA examinations.
  • Example Mistake: No audit trail showing when and how marketing materials were reviewed and approved.

7. Misuse of Third-Party Rankings or Awards

  • Using awards or rankings without disclosing the selection criteria or potential payment for inclusion can mislead investors.
  • Example Mistake: Advertising a “Top Advisor” award without disclosing the payment to participate in the survey.

Sample Ways to Improve Marketing Review Practices

Sample Ways to Improve Marketing Review Practices

  • Implement Robust Review Workflows: Establish structured, documented processes for reviewing and approving all marketing content, including social media and third-party content.
  • Maintain a Centralized Repository: Archive all marketing materials, review notes, approvals, and disclosures in a centralized, searchable system.
  • Enhance Disclosure Practices: Use clear, consistent, and prominently placed disclosures tailored to each piece of content. Avoid boilerplate footnotes.
  • Stay Educated on SEC and FINRA Guidelines: Keep marketing and compliance teams up to date on the latest regulatory expectations, especially around the SEC Marketing Rule and FINRA Rule 2210.

Vigilant's Conclusion

Conclusion: Vigilant Can Help

Navigating the complexities of SEC and FINRA marketing regulations is challenging, especially with evolving rules, digital platforms, and increased regulatory focus. Vigilant provides tailored Compliance Services that help RIAs, RICs, and Broker-Dealers make sure their marketing materials are accurate, compliant, and aligned with industry best practices.

From marketing reviews to compliance training and examination support, Vigilant’s team of experienced Compliance Professionals work closely with clients to identify risks, correct errors, and implement scalable review processes.

Our comprehensive services include, but are not limited to:

  • Detailed marketing material review and approval
  • Disclosures analysis and enhancements
  • Hypothetical performance and testimonial compliance
  • Social media oversight programs
  • Regulatory exam preparation and remediation support

With Vigilant Compliance as your partner, our goal is to help you market confidently knowing your materials meet regulatory standards.

Contact Us