Advertising Compliance — Investment Marketing & Communications

Regulatory status current as of June 2026 — verify effective dates, dollar thresholds, and pending rulemakings against current SEC/FINRA/FinCEN sources before advising.

Core Concepts

SEC Marketing Rule (Rule 206(4)-1)

Effective November 4, 2022, the SEC's Marketing Rule replaced both the prior Advertising Rule (old Rule 206(4)-1) and the Cash Solicitation Rule (old Rule 206(4)-3) for investment advisers registered under the Investment Advisers Act of 1940. The rule applies to any "advertisement" — defined broadly as (1) any direct or indirect communication by an adviser that offers or promotes investment advisory services, or (2) any endorsement or testimonial for which the adviser provides compensation.

Seven general prohibitions. An advertisement may not:

1. Include untrue statements of material fact or omit material facts necessary to make the statement not misleading in light of the circumstances.
2. Include material statements of fact that the adviser does not have a reasonable basis for believing it can substantiate upon demand by the SEC.
3. Include information that would reasonably be likely to cause an untrue or misleading inference to be drawn about a material fact relating to the adviser.
4. Discuss potential benefits without providing fair and balanced treatment of associated material risks or limitations. A one-sided presentation of returns without discussing the corresponding risks violates this prohibition.
5. Reference specific investment advice in a misleading manner. This prohibition targets cherry-picking — presenting only favorable past recommendations while omitting unfavorable ones.
6. Include or exclude performance results, or present performance time periods, in a manner that is not fair and balanced. This encompasses selective time-period presentation, choosing only the best-performing periods and ignoring others.
7. Be otherwise materially misleading.