PLANADVISER - July/August 2021 - 29
growing your practice / sales champ
ME
LIKE
How to procure, and use, client
endorsements to advertise your practice
L
ate last December, the Securities and Exchange Commission (SEC) updated the
Investment Advisers Act of 1940 rules governing investment advisers' use of advertisements
and compensation to solicitors. The revision, Rule 206(4)-1, also known as
the " marketing rule, " took effect on May 4. It likely will lead to endorsements and testimonials
becoming a staple part of advisers' advertising and marketing programs.
The changes allow advisers to enhance how they self-promote in communications
in the age of social media. But the new rules pose challenges as well as opportunities
because some advisory firms could lack experience soliciting endorsements and testimonials.
How do you decide which clients or potential spokespersons to approach, and
how do you get their permission while complying with the new rule?
Off to a Slow Start
As of mid-July, industry response to the rule has been muted. Rebecca Hourihan, founder
and chief marketing officer of 401(k) Marketing LLC, which helps advisers market their
expertise, in San Diego, says her firm is waiting for home office compliance departments
to provide formal guidance about how their adviser-affiliates may proceed. " We
haven't gotten a lot of feedback yet on how we can collect testimonials or endorsements
and then distribute them, " she says. " And what types of content can we distribute them
through? So, it's a little bit of a holding pattern for us. "
Joshua Deringer, a Philadelphia-based partner with law firm Faegre Drinker Biddle &
Reath LLP, cites several possible reasons that asking clients to weigh in has been slow. The
rule was released during a transition between presidential administrations, and regulatory
agency rules adopted before the inauguration were put on hold. Consequently, it is
Art by Dalbert B. Vilarino
planadviser.com July-August 2021 | 29
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PLANADVISER - July/August 2021
Table of Contents for the Digital Edition of PLANADVISER - July/August 2021
Publisher’s Note
Data Points
Compliance News
Trends
Proposals That Please
2021 PLANADVISER Small-Plan Services Survey: Small Wonders
‘Like’ Me
Building Out Referral Networks
Look Toward The Future
Now A Fiduciary
Cybersecurity And ERISA
Q&A
PLANADVISER - July/August 2021 - Cover1
PLANADVISER - July/August 2021 - Cover2
PLANADVISER - July/August 2021 - 1
PLANADVISER - July/August 2021 - Publisher’s Note
PLANADVISER - July/August 2021 - 3
PLANADVISER - July/August 2021 - Data Points
PLANADVISER - July/August 2021 - 5
PLANADVISER - July/August 2021 - Compliance News
PLANADVISER - July/August 2021 - 7
PLANADVISER - July/August 2021 - 8
PLANADVISER - July/August 2021 - 9
PLANADVISER - July/August 2021 - Trends
PLANADVISER - July/August 2021 - 11
PLANADVISER - July/August 2021 - 12
PLANADVISER - July/August 2021 - 13
PLANADVISER - July/August 2021 - 14
PLANADVISER - July/August 2021 - 15
PLANADVISER - July/August 2021 - Proposals That Please
PLANADVISER - July/August 2021 - 17
PLANADVISER - July/August 2021 - 18
PLANADVISER - July/August 2021 - 19
PLANADVISER - July/August 2021 - 2021 PLANADVISER Small-Plan Services Survey: Small Wonders
PLANADVISER - July/August 2021 - 21
PLANADVISER - July/August 2021 - 22
PLANADVISER - July/August 2021 - 23
PLANADVISER - July/August 2021 - 24
PLANADVISER - July/August 2021 - 25
PLANADVISER - July/August 2021 - 26
PLANADVISER - July/August 2021 - 27
PLANADVISER - July/August 2021 - ‘Like’ Me
PLANADVISER - July/August 2021 - 29
PLANADVISER - July/August 2021 - 30
PLANADVISER - July/August 2021 - 31
PLANADVISER - July/August 2021 - 32
PLANADVISER - July/August 2021 - 33
PLANADVISER - July/August 2021 - Building Out Referral Networks
PLANADVISER - July/August 2021 - 35
PLANADVISER - July/August 2021 - Look Toward The Future
PLANADVISER - July/August 2021 - 37
PLANADVISER - July/August 2021 - Now A Fiduciary
PLANADVISER - July/August 2021 - Cybersecurity And ERISA
PLANADVISER - July/August 2021 - Q&A
PLANADVISER - July/August 2021 - Cover3
PLANADVISER - July/August 2021 - Cover4
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