Financial Advisor Website Compliance: What the SEC and FINRA Actually Require
This article is for informational purposes only and does not constitute legal or compliance advice. Regulatory requirements vary based on your registration status, state, and specific circumstances. Consult a qualified compliance attorney or your compliance officer before implementing changes to your website.
Financial advisor websites operate under a specific regulatory framework. The rules aren't complicated, but they're frequently misunderstood, often ignored, and occasionally misapplied in ways that create risk for the firm.
This article provides a practical overview of what the SEC and FINRA require from advisory firm websites, what the amended marketing rule changed, and where advisors typically make mistakes that create compliance exposure.
Who regulates what
Your website's compliance obligations depend on how you're registered.
SEC-registered RIAs. Investment advisers registered with the SEC under the Investment Advisers Act of 1940 are subject to SEC rules, including the Marketing Rule (Rule 206(4)-1). They are not directly regulated by FINRA.
State-registered RIAs. Advisers with less than $100M in regulatory AUM are typically registered with state securities regulators. State rules vary, but many mirror SEC requirements. Check your state's specific requirements.
FINRA-registered broker-dealer representatives. Financial professionals registered with FINRA under a broker-dealer are subject to FINRA rules, including FINRA Rule 2210, which governs member communications including websites.
Dual registrants. Advisors who hold both an RIA registration and a FINRA registration must comply with both sets of rules. The more restrictive requirement applies where they conflict.
This article focuses primarily on SEC/RIA requirements, with notes on FINRA where the rules differ meaningfully.
The marketing rule: what changed in 2022
The SEC's Marketing Rule (Rule 206(4)-1), effective November 4, 2022, replaced the advertising rule and the cash solicitation rule that had governed adviser marketing since 1961. The changes were significant.
What the Marketing Rule permits that the old rule didn't:
Testimonials and endorsements from clients and third parties, subject to specific conditions. Before 2022, these were categorically prohibited for SEC-registered advisers. Now they're permitted with required disclosures.
Third-party ratings (like Forbes Best-In-State Wealth Advisor lists) are permitted, subject to conditions.
Performance advertising is permitted with specific requirements.
What the Marketing Rule prohibits:
Untrue statements of material fact.
Materials that are misleading by omission.
References to specific investment advice that was profitable without including all advice over a relevant period (the "cherry-picking" prohibition).
Testimonials or endorsements that are not accompanied by the required disclosures.
Advertisements that include or exclude performance results in a misleading way.
The core obligation: marketing materials, including your website, must be fair, balanced, and not misleading. Everything else is built on that requirement.
Required disclosures for testimonials
If your website includes client testimonials, the Marketing Rule requires specific disclosures. These must be clear and prominent.
The required disclosures:
- That the testimonial was given by a current client of the adviser.
- Whether the client was compensated for the testimonial.
- A brief statement that the client's experience may not be representative of other clients and is not a guarantee of future performance.
For endorsements from non-clients (third-party endorsements):
Same disclosure requirements apply, plus disclosure of any material conflicts of interest.
For paid testimonials and endorsements:
If you pay someone to endorse you or provide a testimonial, additional disclosure of the compensation arrangement is required.
The disclosure must appear in the same medium as the testimonial. If the testimonial is on your website, the disclosure must be on your website, in close proximity to the testimonial. A disclosure page that's three clicks away from the testimonial doesn't satisfy the rule.
Practice recommendation: work with your compliance officer to draft compliant disclosure language before displaying any testimonials. The exact language matters.
Third-party ratings and lists
Awards, rankings, and "best of" lists appear on many advisory websites. The Marketing Rule permits their use with conditions.
The conditions include:
- Disclosure of the rating methodology used by the rating organization, or a hyperlink to it.
- Disclosure of whether the adviser paid a fee to be considered for the rating.
- The date of the rating.
The "Forbes Best-In-State Wealth Advisor" list, J.D. Power ratings, and similar recognitions all require disclosure that payment was involved if that's the case (Forbes and similar lists often require payment to be considered or to be included in print), and disclosure of the methodology.
Using these ratings without the required disclosures is a violation of the Marketing Rule. Using ratings from lists where the selection criteria are unclear, or where any adviser who pays can be included, creates additional risk because those ratings may be misleading.
If you display any third-party recognition on your website, review what disclosure it requires under the Marketing Rule and ensure that disclosure is present.
Performance advertising
The Marketing Rule establishes specific requirements for displaying performance results. Advisory websites that skip performance data avoid this entirely, but for those that do include it, the rules are detailed.
Key requirements:
Performance results must be net of fees unless gross performance is presented alongside net performance.
A relevant benchmark comparison is required for certain types of performance presentation.
You cannot cherry-pick time periods that make performance look favorable while omitting unfavorable periods.
If you include hypothetical or back-tested performance, additional disclosure and requirements apply.
The simplest compliance approach for most advisory websites: don't display specific performance results unless you've worked through the Marketing Rule requirements with legal counsel. Describing your investment philosophy and process is permitted. Displaying returns without meeting the marketing rule's performance advertising requirements is not.
General disclosure requirements
Beyond testimonials and performance, advisory websites should include several standard disclosures.
Investment adviser registration disclosure. Your website should make clear that you are an investment adviser registered with the SEC or relevant state authority. The common formulation: "Smith Financial Planning is a registered investment adviser in the state of Texas. Registration does not imply a certain level of skill or training." That last sentence is required by SEC guidance when describing registration status.
Form ADV Part 2 accessibility. Your Form ADV Part 2 brochure must be delivered to new clients, but it's also a marketing document that describes your services, fees, conflicts of interest, and disciplinary history. Many advisers link to their ADV from the website footer or disclosures page. This isn't strictly required by the SEC but is recommended practice and signals transparency.
Linking to BrightLocal/BrokerCheck. For FINRA-registered individuals, there's a requirement to include a link to BrokerCheck on firm websites. For SEC-registered RIAs, there's no explicit SEC requirement to link to your IAPD record, but doing so is transparent and recommended.
Social media disclosures. If your website links to or embeds your social media presence, and your social media contains investment-related content, those social media posts may be subject to the marketing rule. This is an area of ongoing regulatory guidance.
FINRA Rule 2210: key differences for BD-affiliated advisors
FINRA-registered advisors (broker-dealer representatives) face different website rules under FINRA Rule 2210.
Key differences:
Pre-approval requirements. Certain communications (retail communications, including websites visible to the public) may require principal pre-approval before they're published. FINRA member firms have specific procedures for this.
Testimonials under FINRA rules. FINRA's rules on testimonials differ from the SEC's Marketing Rule. Until 2022, the SEC prohibited testimonials. FINRA has historically permitted them with conditions. The rules have moved closer together but remain distinct.
Balanced presentation. FINRA Rule 2210 requires that communications present a balanced view of risks and benefits. A website that only discusses the upside of your investment approach without acknowledging risk would not comply.
Recordkeeping. FINRA member firms must retain records of their communications, including website content, for specified periods. Changes to a website (adding, removing, or modifying content) should be documented and retained.
If you're dual-registered, your broker-dealer's compliance department typically has review authority over your website. Work with them before publishing new content or making material changes.
What your compliance section should actually look like
A compliance disclaimer in the footer is standard on advisory websites. The quality of these varies enormously.
A compliant, practical footer disclosure for an SEC-registered RIA:
Smith Financial Planning LLC is a registered investment adviser. Information presented on this website is for educational and informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. Please read our Form ADV Part 2 for complete information about our services, fees, and conflicts of interest. [Link to ADV] | CRD: XXXXXXX
This covers:
- Registration disclosure with the required language about registration not implying skill or training
- A statement that the website is informational, not advice
- The required past performance disclaimer
- Risk disclosure
- ADV reference and CRD number
What it should not include: a wall of legalese that no visitor reads, compliance text in 8-point font that a mobile visitor cannot read, or disclaimer language so broadly written that it seems to disclaim any obligation to the reader.
Common compliance mistakes on advisory websites
Using the term "fiduciary" without accuracy. If you're a fee-only RIA, calling yourself a fiduciary is accurate and you should say so clearly. If you're a BD representative, the fiduciary standard applies only in certain contexts. Being vague about when you are and aren't a fiduciary is misleading.
Testimonials without required disclosures. Extremely common, especially for advisors who received the current marketing rule incorrectly explained. Add the required disclosures before displaying any testimonials.
Awards without disclosure of methodology or payment. If any award required payment to apply or be considered, that must be disclosed.
Outdated regulatory status. If your AUM has crossed the $100M threshold and you've moved from state registration to SEC registration, your website should reflect the correct registration status.
Copy that implies guaranteed outcomes. "We help advisors build the retirement they deserve" or "our clients see their wealth grow" are borderline statements. Any language that implies a specific financial result is at risk under the prohibition on misleading statements.
Working with your compliance officer
Website compliance is not a one-time review. Every time you add content, display a new testimonial, list a new award, or change your service description, there may be compliance implications.
Best practice: establish a standing review process with your compliance officer for website changes. For BD-affiliated advisors, this may be required. For RIAs, it's best practice.
The goal is a website that's both effective and compliant: one that communicates clearly, builds trust, and generates inquiries, within the rules your regulator has established. Those goals are not in conflict. A website built for transparency and clarity tends to both convert better and avoid compliance issues.
This article is for informational purposes only and does not constitute legal or compliance advice. Consult a qualified compliance attorney or your compliance officer for guidance specific to your situation.
Finsites builds advisory websites with compliance-aware design: footer disclosures, ADV linkage, testimonial disclosure formatting, and content structured to avoid common marketing rule violations. Book a growth call to discuss your website's compliance posture.
