Marketing For Financial Advisors | Compliance Tips

Financial advisor marketing is a crucial component for financial advisors to reach new clients and grow their business. However, it is important to understand and comply with the regulatory requirements to avoid any legal issues. Here are some best practices to keep in mind when it comes to compliance and regulatory requirements for financial advisor marketing:

Know the regulations: The most important thing is to familiarize yourself with the regulations. The Financial Industry Regulatory Authority (FINRA) is the main regulatory body for financial advisor marketing, so it is important to know the guidelines and rules set by FINRA. You can find FINRA's marketing rules and guidelines at: https://www.finra.org/rules-guidance/guidance/communication-guidance-and-faq

Be truthful and accurate: All marketing materials must be truthful, accurate, and not misleading. This includes the use of performance numbers, testimonials, and other client information. You can learn more about FINRA's requirements for truthful and accurate marketing at: https://www.finra.org/rules-guidance/key-topics/truthful-advertising

Use disclosures: Disclosures are necessary in marketing materials to provide additional information about the advisor or the product being marketed. FINRA requires that disclosures be prominently displayed and easy to understand. For more information on the use of disclosures in financial advisor marketing, see: https://www.finra.org/rules-guidance/guidance/communication-guidance-and-faq/disclosures-communications

Avoid performance promises: Financial advisors cannot make performance promises or guarantee investment results in their marketing materials. Instead, they should focus on their experience, education, and services offered. FINRA has specific rules regarding performance promises, which can be found at: https://www.finra.org/rules-guidance/key-topics/truthful-advertising/prohibitions-performance-projections

Proper use of testimonials: Testimonials can be a powerful tool in financial advisor marketing, but they must comply with FINRA guidelines. Testimonials must be genuine and representative of typical experiences, and advisors must have written permission from clients to use their testimonials. FINRA has specific rules regarding the use of testimonials in financial advisor marketing, which can be found at: https://www.finra.org/rules-guidance/guidance/communication-guidance-and-faq/testimonials

Use appropriate marketing channels: Advisors must choose the appropriate marketing channels, such as email, social media, or direct mail, to reach potential clients. The marketing materials must comply with the regulations set forth by FINRA for each channel. You can learn more about FINRA's requirements for different marketing channels at: https://www.finra.org/rules-guidance/guidance/communication-guidance-and-faq

Review marketing materials regularly: Regular review of marketing materials is essential to ensure ongoing compliance with regulatory requirements. This will help avoid any legal issues and ensure that clients receive accurate information. You can learn more about FINRA's requirements for reviewing marketing materials at: https://www.finra.org/rules-guidance/guidance/communication-guidance-and-faq/review-and-supervision-communications

In conclusion, it is important to understand and comply with the regulations set forth by FINRA to ensure that financial advisor marketing is ethical, truthful, and accurate. By following these best practices, financial advisors can build a successful business while maintaining the trust and confidence of their clients.