Sec Marketing Rule

# The SEC Marketing Rule The SEC Marketing Rule is a high-frequency topic in Section IV (Laws, Regulations & Guidelines) of the Series 65 exam, which carries 30% of the exam weight (approximately 39 of 130 scored questions) [NASAA Series 65 Exam Content Outline, effective 2023-06-12]. Expect questions testing not just definitions but the specific conditions that make advertising permissible or prohibited. Understanding this rule is essential because it governs nearly everything an investment adviser communicates to the public about performance and client experiences. --- ## Overview: What Is the SEC Marketing Rule? The SEC Marketing Rule (adopted under the Investment Advisers Act of 1940) modernized how investment advisers may advertise their services. It replaced older, more restrictive rules and introduced a framework that allows testimonials, endorsements, and performance advertising — but only under carefully defined conditions. The rule applies to investment advisers registered with or required to register with the SEC ("federal covered advisers"), and its principles are heavily tested on the Series 65. --- ## Key Concepts ### Testimonials and Endorsements A testimonial is a statement by a current client about their experience with the adviser. An endorsement is a statement by a non-client (such as a celebrity or industry figure) about the adviser. Both are now permitted under the Marketing Rule, but only if certain conditions are met: | Requirement | Details | |---|---| | Disclosure | Must disclose whether the person giving the testimonial/endorsement is a client and whether they were compensated | | Written Agreement |…