Compliance Solutions for Investment Advisers


Yesterday, for whatever reason, I was rummaging around a few adviser web sites and came across one that included a testimonial. How did I know it was a testimonial? Was it my compliance expertise? My familiarity with the nuances of marketing and advertising? My ability to discern the hidden meaning behind the written word? Nope. It was because right there on the Home Page it had a section labeled “Testimonials.” Usually advisers are not so brazen. Lest anyone need reminding, Rule 206(4)-1 under the Advisers Act states that:

“It shall constitute a fraudulent, deceptive, or manipulative act, practice, or course of business . . . directly or indirectly, to publish, circulate, or distribute any advertisement . . .¬†Which refers, directly or indirectly, to any testimonial of any kind concerning the investment adviser or concerning any advice, anaylsis, report or other service rendered by such investment adviser . . .”