The SEC Marketing Rule continues to shape how RIAs advertise their services and communicate with clients. The SEC's Division of Examinations identified Marketing Rule compliance as a priority again in its December 2025 Risk Alert, highlighting common issues with testimonials, endorsements, and recordkeeping. 

Industry data shows that 33.8% of RIAs use at least one marketing activity covered by the rule, while 28.9% include performance information in advertisements. RIAs should maintain clear policies and review marketing materials regularly to reduce compliance risk and avoid costly enforcement actions.

How Should RIAs Use Testimonials?

The SEC allows testimonials if firms provide the required disclosures. Advisors should clearly disclose whether the person is a client, whether compensation was provided, and whether any conflicts of interest exist.

The December 2025 Risk Alert found that many firms failed to provide complete disclosures or adequately review testimonial content before publication. RIAs should establish review procedures before publishing any testimonial.

How Should RIAs Present Performance?

Performance advertising remains one of the SEC's main examination priorities. RIAs should present net performance alongside gross performance and ensure all required disclosures accompany hypothetical performance.

The SEC has already brought enforcement actions against firms that advertised hypothetical returns without appropriate policies, including a 2023 sweep that resulted in $850,000 in combined penalties. Every performance claim should be supported by clear records and presented with appropriate context.

What Recordkeeping Practices Should RIAs Follow?

The Marketing Rule expanded recordkeeping requirements under Advisers Act Rule 204-2. RIAs should maintain copies of advertisements, records related to testimonials and endorsements, and other required marketing documentation for at least five years.

Recordkeeping remains one of the most common examination findings. In early 2025, the SEC announced more than $63 million in penalties across multiple firms for recordkeeping violations.

What Overlooked Opportunities Can Strengthen Compliance?

As the SEC and other regulators place greater emphasis on marketing practices and broader oversight, RIAs should also review areas that have traditionally received less attention. One example is securities class action recovery. Securities class action settlements totaled $8 billion in 2025, yet many eligible claims went unclaimed because filing them required significant manual work.

Platforms such as 11th.com automate the entire process and are natively integrated with major custodians and TAMPs, covering more than 85% of the market. Helping clients recover settlement proceeds not only supports fiduciary responsibilities and comprehensive oversight of client assets but also creates tangible value that clients can see directly in their accounts.

What Should RIAs Prioritize in 2026?

In 2026, RIAs should regularly review marketing materials, maintain complete records, and update internal policies as SEC guidance evolves. Firms that treat Marketing Rule compliance as an ongoing process will be better prepared for examinations while continuing to communicate effectively with clients and prospects.

FAQ

Why should RIAs review their marketing materials regularly?

Regular reviews help firms stay aligned with the SEC Marketing Rule and reduce compliance risk.

What disclosures do RIAs need for testimonials?

RIAs should disclose whether the person is a client, whether compensation was provided, and any material conflicts of interest.

How should RIAs present investment performance?

Performance advertisements should include the required disclosures and present information in a fair and balanced manner.

How long should RIAs keep marketing records?

The SEC generally requires firms to retain marketing records for at least five years.

What overlooked area can support compliance and client value?

Securities class action recovery helps RIAs demonstrate comprehensive oversight of client assets while giving clients tangible results they can see directly in their accounts.