COMPLIANCE CORNER

Are Compliance Concerns Keeping You From Asking Clients for Reviews?

By Brian Thorp 

If I asked you to name an industry or profession where businesses that choose not to solicit client reviews are more successful than those that do, could you think of one?

I suspect you can’t. (That’s okay; I can’t either.) The vast majority of consumers look for online reviews to inform their hiring decisions but according to a recent study by FiComm, only 9.3% of SEC Registered RIAs have begun using client testimonials and online reviews in their marketing efforts. 

In my role at Wealthtender, I have a front row seat to see how the small percentage of RIAs proactively inviting their current clients to write online reviews are now winning business over firms without reviews. And importantly, these RIAs have implemented compliant testimonial marketing strategies to do so. 

Among the 90% of RIAs not yet using online reviews and testimonials, it’s likely that unfounded compliance concerns remain a significant impediment to getting started. Now that it’s been over four years since the SEC Marketing Rule became effective, this excuse is getting stale.

Advisory firms not focused on growth can refrain from soliciting client testimonials but all others must understand they now fall into one of two categories: 1) RIAs with online reviews that will win an outsized portion of new business in the coming years, or 2) RIAs appearing less frequently in Google search results, less often in ChatGPT and other AI tools, and less likely to appear on  the short lists of prospects.

If your firm remains in the latter category, there’s no need to panic. You can implement a compliant online review collection and testimonial marketing program in just a few weeks that could almost immediately lower your client acquisition cost and amplify your marketing budget ROI.  

In this article, we’ll discuss what you need to know to begin collecting testimonials, clear up common compliance misconceptions, and use actionable tactics to win more business with your online reviews. 

Understanding the SEC Marketing Rule

The SEC Marketing Rule, which took effect in 2021, provided a long-awaited framework for the use of testimonials by RIAs. Under this rule, financial advisors can invite clients to share their reviews online and promote testimonials in marketing activities.

Key requirements include:

If you’re thinking of incorporating testimonials into your marketing strategy, establish a strong partnership with your compliance officer or consultant to ensure all regulatory requirements are satisfied. Think twice before using a platform like Google Reviews that doesn’t incorporate the disclosures required by the SEC Marketing Rule. And if you dip your toes in the water by only displaying testimonials on your own website, make sure you’re comfortable foregoing the benefits of publishing online reviews on a third-party platform that can strengthen your search engine optimization (SEO) in traditional search engines and answer engine optimization (AEO) in the next generation of AI search tools like ChatGPT.

Debunking Common Myths About Testimonial Marketing

Let’s tackle a few myths that continue to circulate among advisors.

Myth #1: Our compliance officer is never going to let us use testimonials in our marketing.  

Fact: While we encountered many compliance professionals who didn’t want to be among the first to greenlight testimonials at their firms, the compliance officers and consultants we speak with today have grown comfortable with the regulatory framework and practical approaches to document and implement a testimonial collection and marketing program.   

Myth #2: I can copy and paste unsolicited reviews from Google onto my website.

Fact: Not so fast. Even if a glowing review exists publicly that you didn’t solicit, reusing it in your own advertising (including your website or email marketing) makes it subject to the SEC Marketing Rule. You must display all required disclosures, ensure you’ve provided an opportunity for all of your current clients to share their feedback, and prominently link to a page where consumers can read a complete or representative selection of your solicited client testimonials.

Myth #3: I’m a state-registered RIA and still prohibited from using testimonials.

Fact: Okay, this myth remains a reality in several states that do continue to prohibit testimonials but at least 25 states have updated their rules to permit state-registered advisors to collect online reviews and promote testimonials as long as they abide by the SEC Marketing Rule provisions. We also expect to see a number of additional states begin permitting testimonials in the next year and you’ll find status updates in this tracking database we maintain. 

Actionable Steps to Get Started

If you're ready to leverage the power of online reviews and testimonial marketing, follow these steps:

1. Consult Your Compliance Officer. Before initiating any campaign to solicit testimonials, speak with your firm’s compliance team. It can offer education and guidance on both regulatory considerations and firm policies and procedures you’ll need to follow when getting started.

2. Choose the Right Platform(s). Decide whether you'll only solicit reviews to be published on your website, use specialized solutions designed for regulatory compliance, or a combination of platforms. Each has different benefits and compliance implications.

3. Develop a Solicitation Strategy. Create a clear, compliant process for requesting reviews in a manner that avoids cherry-picking concerns by inviting all current clients to share their feedback. 

4. Create a Disclosure Template. Work with your compliance team to develop standard disclosures for use across platforms. For example: “This testimonial was provided by a current client with no conflicts of interest who was not compensated for their review. This review may not be representative of all client experiences.”

5. Monitor and Update Regularly. Maintain oversight of your reviews to ensure proper disclosures always accompany published testimonials. Update your strategy as needed. 

6. Incorporate Testimonials Into Your Marketing. Once you've checked the compliance boxes, include client testimonials in:

Just remember: the minute a third-party testimonial is incorporated into your own advertising, it becomes subject to the SEC requirements. Always include proper disclosures.

Final Thoughts: Social Proof with Integrity

Online reviews and testimonials are more than digital word-of-mouth—they're a powerful way to build trust with prospects and search engines in a highly competitive industry. The SEC’s updated guidance allows you to embrace testimonials, provided you do so transparently and thoughtfully.

The most successful advisors in the next 10 years will be those who approach online testimonials with both a marketer’s ambition and a compliance officer’s diligence. Start with the right mindset, choose your platforms wisely, and collaborate closely with your compliance and marketing partners. By doing so, you’ll turn online reviews from a compliance headache into a growth engine for your practice.

UPDATE: On July 29th, the North American Securities Administrators Association (NASAA) issued this news release seeking public comment through August 28, 2025 on proposed rules that could permit more state-registered advisors the ability to collect client testimonials and publish online reviews by following the SEC Marketing Rule guidelines that permit SEC-registered advisors to use testimonials in their marketing activities. Comments are being solicited until August 28.

Brian Thorp is the founder and CEO of Wealthtender, the industry’s first SEC-compliant online review platform for advisors and a leading consumer find-an-advisor directory. He advocates for ethical advisor marketing and empowering investors through education and transparency.

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