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