Recommendations currently change the game when it comes to landing clients. Current statistics in marketing show that recommendations and word of mouth have never been more popular. Post-pandemic, review interaction is up 50%.

Until recently, this was illegal for financial advisors.

In 1961, the Securities and Exchange Commission (SEC) banned financial advisors from client testimonials. The reasoning came down to this: Sharing success stories could be seen as misleading clients.

In late 2022, the SEC finally modernized the rules. Financial advisors can now use testimonials, endorsements, and online reviews, as long as they’re honest and contain the right disclosures. Perhaps due to its quiet announcement following the pandemic, almost no one is taking advantage of it three years later.

The new marketing rule unlocked three categories that were previously off-limits.

Client testimonials before 2022 were completely banned. Now they are allowed if financial advisors disclose basic information, such as whether the client was paid to give the review. Here’s a look at who’s doing it right:

• Root Financial Advisors: Recommendations are included along with the disclaimer at the bottom of their web page stating that client reviews are client opinions only and were not paid. Testimonials are both in video and written form.
• Bull Oak: Top testimonials include 5-star reviews written in 120 characters or fewer, and Bull Oak features multiple snippets of testimonials right on their home page.
• Mercer Advisors: One of the largest advisory firms in the nation, managing over $70 billion, worked with a marketing company to secure testimonials in 2025. The result was feedback from their 32,800+ clients, some of which are displayed in a fan across their home page.

Professionals outside the service industry, like accountants or lawyers who use a company’s services, have become extremely influential on social media. Before 2022, paying someone to refer clients required complex paperwork and was subject to serious regulatory limitations. Now, the only requirement is a disclosure referencing whether the third party was paid.

Listings like “Top 100 Advisors” lists in financial magazines, Google star ratings, Yelp reviews, and industry awards all fall under this category. The new allowance in 2022 makes it possible for financial advisors to use this rating methodology if they disclose key details about what the rating actually measures.

Shockingly few financial advisors use this method. Now, many advisors can display their “Top Advisor” recognition with a clear regulatory blessing.

The SEC’s new marketing tools have largely gone under the radar. According to an analysis by eMoney, the use rates stack up like this:

• • • Client Testimonials: 2%
    • Non Client Endorsements: 2%
    • Third Party Ratings: 9%

But let’s put this in perspective: 88% of consumers trust online reviews and recommendations from friends. Nearly half of prospects looking for a financial advisor start their search on Google. Yet only 2% of advisory firms are using these marketing tools.

Financial advisors have spent decades saying “absolutely not” to testimonials, and it’s hard to get out of the habit. Plus, there’s also the fear of implementing these changes first. Nobody wants to be the guinea pig for fining. So, a massive amount of revenue goes largely untouched simply because most firms haven’t built a process for requesting, reviewing, and publishing testimonials.

The new rules provide a wide open space for marketing, but they don’t make everything legal. The SEC has been penalizing firms for using these new marketing terms incorrectly.

Financial advisory firms still have a responsibility to maintain a clinical marketing approach, so the new permissions mean advertising cannot

• • • Contain lies or misleading statements (things that aren’t true or leave out important context)
    • Make claims the advisor cannot prove (using language like your financial firm is “the best” without providing evidence)
    • Talk about benefits without mentioning risks (one-sided promotions)
    • Cherry-pick good results while hiding bad results (showing only the investments that worked out)
    • Show performance data in misleading ways (using examples like showing returns before fees when fees significantly reduce what the clients actually earn)
    • Reference specific investment advice misleadingly (using examples like touting a stock pick that worked while ignoring those that didn’t)
    • Include anything reasonably likely to mislead investors (a broad catch-all)

The most common reason firms get fined is due to “hypothetical performance.” This means any data shared with the benefit of hindsight. This includes:

• • • Backtested returns (“If you had invested this way 10 years ago, you would have earned X%”)
    • Model portfolio performance (“Our strategy returned X%” when the results were simulated)
    • Projected returns (“We expect X% over the next year”)

The SEC makes it clearer that, if it’s on your public website and anyone can see it, your statements might be used to mislead by simulated results. Breaking this rule comes with a fine of $175,000 to $430,000.

Here’s what the SEC has been penalizing firms for since 2024:

Don’t put backtested data on public websites

Testimonials need proper disclosures

Always disclose when someone is paid to promote you

Don’t make claims you can’t prove

The SEC is watching closely

Can an advisor edit or delete a negative testimonial?

It depends on the platform. On their own website, advisors can choose which testimonials to display, and there’s no requirement to show every review. However, they can’t edit the words themselves or cherry-pick only five-star reviews if that creates A misleading impression. Advisors have no control over what gets posted on third-party platforms, like Google or Yelp. The key principle: Whatever you show must be fair and balanced, not a highlight reel.

Do testimonials actually help advisors get more clients?

For service industries, research says yes, significantly. Financial advisors are “credence services” like doctors and lawyers, where consumers can easily evaluate quality even after using the service, so the research is slim in this industry. Peer reviews tend to matter even more because people have fewer ways to judge for themselves.

What happens if a client wants to give a testimonial but mentions specific investment returns?

This is tricky. A client saying, “My portfolio went up 25% last year!” Could be considered performance advertising, which triggers a whole separate set of rules (including showing returns for standardized time periods, net fees, and benchmarks). Most complaint departments advise clients to focus on their experience, like how the advisor communicated, whether they felt heard, and if their questions were answered. Testimonials about service quality are much safer than testimonials about investment results.

Can advisors offer incentives to clients who leave reviews?

Yes, but it must be disclosed. If an advisor gives a client a $25 gift card for leaving a review, that review must note the compensation. The bigger issue is that some third-party platforms prohibit incentivized reviews entirely. So, while the SEC allows it with disclosure, the platform might not. Advisors need to follow both sets of rules.

How long do advisors have to keep records of their testimonials and marketing materials?

Five years. Advisors must keep copies of all advertisements—including testimonials, social media posts, and website content—plus documentation of their review and approval process. If the SEC comes knocking three years from now and asks to see the disclosure that was next to a testimonial in 2026, the advisor needs to produce it.

What about video testimonials?

The same disclosure requirements apply, but the format matters. For video, the disclosures can be spoken, shown on screen, or included in an accompanying written description. Many firms use a combination, which includes A brief verbal mention and a more detailed written disclosure in the video description or on the web page. The key is that viewers can easily access the information.

Can an advisor use testimonials on social media like LinkedIn or Instagram?

Yes, but it comes down to character limits. All testimonials should be within limited character formats, but social media spaces like X have truncated those post links even further. Some firms avoid the hassle by keeping testimonials on their website and using social media to drive traffic there instead.

The financial advice industry is in an unusual position. For 60 years, advisers couldn’t compete on client satisfaction the way other industries could, but that is all changed. And almost no one is doing it.

For consumers, this means you may start seeing reviews, testimonials, and social proof from financial advisors. When you do, look for the disclosures.

For advisors, the numbers from other industries don’t lie: People trust testimonials as much as personal recommendations, and reviews can increase website conversion significantly. With only 2% of firms using testimonials, implementing them immediately gives you an advantage over the other 98%.

The rules have changed. Most practices haven’t. That gap won’t last forever.

Kepler Script focuses on technical professionals looking to build personal brands that attract clients and establish authority. Ghostwritten books turn your expertise into a tangible asset that opens doors to speaking engagements, media opportunities, and premium client relationships.

Kepler Script also focuses on building long-term marketing systems that keep your name in front of the right people using LinkedIn networking strategies, e-mail newsletters, and ongoing article content. If you’re ready to stop being the best-kept secret in your field, reach out to start a conversation.