SEC Marketing Rule: The 2026 Testimonial Playbook

Inside the operational gaps the SEC is flagging in 2026, and the straightforward fixes most firms are missing

Key Takeaways:

• What changed with the SEC marketing rule in late 2025? The SEC's December 2025 risk alert shifted focus from whether firms have a testimonial policy to whether they're actually following it, closing the gap between compliance on paper and compliance in practice.
• What's the most defensible way to collect testimonials? Survey all your clients, keep a documented record of every response, and link to a landing page that shows the full picture (not just your favorites).
• If it's not that complicated, why aren't more firms doing it? Most advisors overestimate the compliance burden and underestimate how eager their clients are to speak up on their behalf.

The SEC's December 2025 risk alert made the stakes concrete for advisor marketing: regulators are looking at operational execution now, not just whether a policy exists in a binder somewhere. We sat down with compliance pros Chris Payne and Annie Varatharajah from KeyBridge Compliance to talk through what's changed, what's working, and where firms still have room to move.

Three and a half years ago, when the SEC marketing rule first opened the door to testimonials and endorsements, most advisors had the same reaction: Should I even touch this?

Fair enough. The rule was new, the guidance was sparse, and nobody wants to be the first cautionary tale.

But that chapter has closed. The question now is how to use testimonials compliantly, strategically, and in a way that actually moves the growth needle. And yet, the vast majority of advisory firms still haven't started.

That hesitation has created a clear opening. While testimonials remainone of the most underused tools in the industry, competitive, growth-minded firms are beginning to recognize them for what they are: a rare chance to differentiate, build trust, and gain ground while others stay on the sidelines.

Testimonial Compliance: Where Firms Keep Getting Stuck

The patterns the SEC flagged in December are consistent (and entirely preventable).

• The collection gap. Many firms are collecting testimonials informally, whether by reaching out to their happiest clients or running casual referral efforts. It may feel harmless, but even something as seemingly minor as a gift card program tied to client referrals can trigger the SEC marketing rule's disclosure requirements.
• The disclosure gap. The most common reason testimonials get flagged as non-compliant is almost anticlimactic: the required disclosures simply weren't provided when the testimonial was shared. Firms bury them behind hyperlinks, shrink the font, or tuck them somewhere decorative and invisible.
• The maintenance gap. The SEC expects you to verify that testimonial-givers are still current clients. Chris and Annie recommend reviewing your active testimonials at least every six months, and more frequently during volatile markets, when client turnover tends to pick up.

It's also worth noting that the referral programs, lead generation arrangements, and even third-party influencer activity can all trigger the same disclosure obligations. For any firm running a structured referral program or exploring partnerships that involve someone speaking on the firm's behalf, the compliance conversation should be happening beforehand, not after the fact.

RIA Testimonials: How to Build a Collection Process You Can Defend

The place where advisors consistently stumble is how they collect testimonials in the first place. Cherry-picking is the issue: the SEC marketing rule allows you to choose which testimonials to feature, but you need a defensible, documented reason for how you got there.

For written testimonials

Survey all your clients and keep a record of every response. We recommend you feature a representative sample on your homepage and create a landing page linking to the full set. The SEC doesn't need everything front and center; they just need the complete picture to be accessible.

For video testimonials

Use a randomized time window ("In May, we'll invite all clients who come in for a one-on-one to participate"). That gives you a documented reason for who was asked and when. Segmenting by tenure works too, though it can carry slightly more risk.

The Seven Prohibitions

All marketing materials, including those featuring testimonials, must also comply with the SEC's seven general prohibitions, which cover everything from misleading statements to unbalanced performance claims. Your compliance team should be reviewing active materials against these standards on an ongoing basis.

Getting Your Disclosures Right

This is where the anxiety tends to be loudest, and where the reality is the most reassuring. If the client was not compensated and no material conflict exists, the disclosure is relatively simple:

If compensation is involved (meaning anything over $1,000, including non-cash benefits), you will need a written agreement and more layered disclosure. But for most firms collecting organic feedback, that threshold is unlikely to come into play.

The key operational point is that disclosures need to appear alongside the testimonial when it's shared, in a readable, prominent format. No footnotes, no lighter font, and no "click here to read the fine print." If your marketing team designs the asset and compliance reviews it after the fact, flip that workflow.

On Google Reviews & Third-Party Rankings

Google Reviews remain a gray area. If a client posts one organically, you're generally fine. If you're actively soliciting them, satisfying disclosure requirements within Google's platform is operationally tough. Our advice: until regulators provide more guidance, let them happen naturally.

A similar principle applies to third-party ratings and awards. If your firm is featured in a "Best Of" list or industry ranking, you can use that in your marketing, but the SEC requires you to disclose when the rating was given, who created it, and whether any compensation was involved.

Why This Matters More Than You Think

Only about 10% of advisory firms are actively using testimonials right now, which means the vast majority of the industry is sitting out on one of the few marketing strategies where your clients do the selling for you.

Here's what we can tell you from years of doing this work: When you open the door, what walks through is enthusiasm, warmth, and genuine eagerness to share. Clients want to talk about advisors they trust.

The SEC marketing rule gave advisors permission, and the December 2025 risk alert clarified expectations. What's left is just the decision to start.

If you’re thinking about building a testimonial program, or pressure-testing the one you already have, let’s connect and explore how we can help your firm pair compliant marketing strategy with execution. Schedule a complimentary consultation with our team.