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Top 3 Ways for Advisors to Use Testimonials

A new SEC rule has financial advisors thrilled about a new opportunity allowing testimonials to enhance their marketing plans. Learn what you can do.

Digital marketing is important to consider when sharing your new testimonials.

- Mattie Boone

Have you heard the news?

There is a new SEC marketing rule that allows for testimonials, and advisors and financial professionals are thrilled about this opportunity to enhance their marketing plan. As of November 15, 2022, LPL’s new testimonials policy allows you to promote non-compensated client testimonials in your marketing materials. With this exciting new update comes many questions about what’s allowed, what a testimonial should look like, and how you can use them.

To briefly summarize, the rule considers a testimonial any statement by a client about their experience with an advisor, or referral of prospects to an advisor. The rule also has a few important conditions to note:

  • No compensation can be paid for the testimonial.
  • No personal or familial relationships are allowed between the testimonial giver and the office.
  • The testimonial language must be accurate and non-promissory.
  • Testimonial must come from a current client.

To review these rules and more, head over to LPL’s Compliance Sec Marketing Rule page on the Resource Center available to LPL financial advisors and professionals.

Now that we know the basics, let’s dive in to the top three ways you can use testimonials.

Prospective Client Flyers

A quick and easy way for prospects to learn more about you and your business is to get their hands on printed materials. Consider creating a welcome packet for new investors or prospects that includes materials about your services and offerings, and of course, testimonials. This can be an effective way to build credibility in your services and the client experience you deliver. It can also serve as a convenient takeaway for new clients to share with their friends and family.

Websites and Social Media

Your website is one of the first places a prospect will check to learn more about your business, so this is a great place to house testimonials. To feature them on your homepage, try positioning them at the midway point of the page using a slider format so the testimonials automatically slide through. Another option is to have a dedicated testimonials page to allow for quick and easy access for clients and prospects.

Pro tip: Make sure you have at least three or four testimonials on these pages.

Along with written testimonials, videos of clients are acceptable as well. Keep in mind that what’s stated in the video does have to be reviewed by compliance verbatim. Once those videos have been approved, social media can be a great place to promote them. Publishing on a social site is a great way to strengthen your branding and promote word of mouth credibility from clients about the positive impact you make on their lives. Whether you use a written or video format, digital marketing is important to consider when sharing your new testimonials.

Google Business Profiles

A Google Business Profile is an online listing that helps people learn about your business. By creating and verifying your business’s profile, you ensure the posted content is accurate and up to date, and that clients and prospects can easily locate your business’s information with the Google search engine. This platform is an effective way to connect you with new prospects who are searching for your services, and to help them learn more about what it is like to work with you.

Helpful Compliance Notes

The testimonial language should reflect the client’s experience in working with your firm, and not about the performance of their investments. Remember to submit the content to LPL’s MRR Compliance Service team prior to use. If it’s not approved, the team will suggest revisions to consider. Once your client reviews and approves the revised language, resubmit to MRR for approval.

When in doubt, contact the Compliance Service Team at 800-877-7210, option 9, option 2, then say “compliance”. Or, contact your Marketing Regulatory Review Analyst for one-on-one support. For additional dos and don’ts, visit the Using Testimonials in Marketing Materials page on the Resource Center.

If you’re looking for recommendations on incorporating testimonials into your marketing plans, or tailoring your strategies to a target audience, we’d love to help! Reach out to the Marketing Consulting team to schedule a one-on-one consultation.

Questions and Consultations

If you have questions or would like to schedule a one-on-one consultation, or if you’d like to subscribe and receive email alerts when new articles become available, contact LPL Marketing Consulting at (800) 877-7210, Option 9, Option 5, Option 1, or email Marketing Consulting.

If you’re interested in a digital marketing strategy that is executed on your behalf, please visit LPL Business Solutions Discover Marketing to complete the form, and a member of their team will be in touch with you directly.

Consult your compliance department for information about the rules and use of social media and the review of all advisor marketing materials.

Tracking: #1-05350275


Mattie helps to guide advisors and administrators on how to easily and effectively market their practice, and ensure that the goals and integrity of the practice is maintained. View full bio.