Summary of Action

In February 2020, submitted a comment to the U.S. Securities and Exchange Commission, which was seeking public comment on the Commission’s proposed rule that would allow investment advisers to use testimonials and endorsements in marketing materials.

In its comment, urged the SEC to include additional limitations in the proposed rule in order to combat the proliferation of deceptive testimonials, which frequently sees in other industries. Among other things, urged the SEC to require investment advisers using testimonials to disclose all material information that pertains to the testimonial(s) — including the rate of return on investment and the date of the claimed success — in order to allow consumers to accurately assess the likelihood of achieving similar results. also recommended that the SEC make clear that testimonials should always disclose typical results and all material connections between the endorser and the adviser. Further, suggested that the SEC include specific guidance regarding how to clearly and conspicuously disclose all material information and connections on different media platforms.

In December 2020, the SEC voted to allow investment advisers to use testimonials for the first time, but with certain restrictions, several of which were suggested in’s comment.

To read’s full comment, use the menu.

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