Compliance
The SEC marketing rule, explained for advisor outreach
The SEC marketing rule (Rule 206(4)-1 under the Investment Advisers Act) governs how registered investment advisers advertise, including outreach that promotes the firm. For outreach, the core duty is straightforward to state and easy to break by accident: be fair, be accurate, and be able to substantiate what you say.
What the rule prohibits
- Untrue statements of material fact, and statements you cannot substantiate.
- Omitting facts that would make a statement misleading.
- Claims about potential benefits without fair treatment of material risks and limitations.
- Misleading use of performance results, including selective or cherry-picked performance.
What it conditions
The rule sets specific conditions for testimonials and endorsements (including disclosure of whether the person is a client and whether they were compensated) and detailed requirements for presenting performance. If your outreach references results, reviews, or referrals, those conditions apply.
What this means for cold outreach
Most cold outreach does not need to quote performance at all, which keeps it simpler. The safe pattern: describe what you do plainly, avoid promises or guarantees, do not imply results you cannot back up, and keep testimonials and performance claims out of cold messages unless you have confirmed they meet the rule's conditions with your compliance team.
How Finterest helps
Finterest supports a review step before messages send, so claims can be checked against your firm's standards, and it keeps a record of what was sent. Finterest supports your firm's compliance process. It does not replace your firm's supervision or approval. It is not a substitute for legal advice on the marketing rule.
Related questions
Up to the full guide: Compliant outreach for financial advisors
Last reviewed: June 2026