The SEC’s amended marketing rule creates opportunities for you to market your business in new ways. At the same time, it requires some new updates that you and GVA must ensure are included in your marketing materials to meet these new regulatory requirements.

Hybrid RIA Advisors – Please navigate to LPL’s Resource Center to view the Compliance Manual and additional articles

RIA Only Advisors – GVA’s updated materials may be found within Section V.A (Advertising & Performance Reporting) and Section IX.C (Record Retention).

As we continue to learn more about the SEC Marketing Rule, we will post updates on this page for your reference. Please email compliance@greatvalleyadvisors.com with any questions that come up!

GVA’s new testimonials policy allows you to promote non-compensated client testimonials in your marketing materials.

Hybrid – Submit all client testimonials through LPL Financial’s Advertising Review Tool.

RIA Only – Submit all client testimonials through GVA’s Salesforce Tickets tab.

What qualifies as a testimonial?

  • The testimonial must come from an existing client
  • You cannot provide either direct or indirect compensation to the client.
  • The testimonial language should reflect the client’s experience while working with you or your firm.
  • The testimonial will be reviewed to ensure it’s not misleading, exaggerated, or promissory, and add the required disclosures.

A quick note on existing solicitation arrangements:

  1. Existing solicitor agreements won’t need to be changed
  2. Future arrangements and lead-generating services will require a Marketing Regulatory Review Ticket submission
  3. The ADV requirement has been removed from these third parties
  4. All INFORMAL referral arrangements now require documentation will require a Marketing Regulatory Review Ticket submission

What is the purpose of this new “endorsement” arrangement?

  1. To know/document which relationships require which level of a Compliance review
  2. To ensure that “reasonable belief” that Clients will receive disclosures when necessary exists

NOT CONCERNED WITH: Word of Mouth

Unformalized agreements or courses of conduct in which referrals are received from another professional in exchange for referrals back (without any cash or other material compensation) do not require written contracts, but still must be documented. Submit these as “Referral/Solicitation Arrangement” Tickets the same way you would a more formalized agreement.

In your Ticket, include a copy of an email sent to the Professional in question requesting that they tell any future clients they refer:

  1. Whether or not they are a Client of yours
  2. That you send each other referrals
  3. Whether or not they are a family member of yours

No specific, uniform disclosure language needs to be used in any of the communications in question.

Password: Great888!

Please visit GVA Recorded Demos and Meetings for a copy of the Basecamp recording that discusses the new rule and how it impacts your office.

Select Basecamp –> November 17 – The New Marketing Rule Update

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