SEC flags marketing missteps

The SEC’s Division of Examinations published a Risk Alert on Dec. 16, 2025 that narrows its examination focus to the Marketing Rule’s Testimonials & Endorsements and Third‑Party Ratings provisions. (sec.gov) The Risk Alert catalogues recurring deficiencies including failure to present clear-and-prominent disclosures at the point of the testimonial or rating, hyperlinking to instead of displaying disclosures, undisclosed compensation for reviewers, and inadequate oversight of endorsers. (standishcompliance.com) The SEC’s enforcement program already produced a Sept. 9, 2024 sweep in which nine advisers settled Marketing Rule charges for a combined $1.24 million in penalties and the orders cited unsubstantiated claims, false membership statements, and outdated third‑party ratings. (sec.gov) Examiners are asking for documentary proof of diligence on rating providers (including copies of rating questionnaires and methodology), explicit date/time disclosures for awards, and written agreements where promoters receive more than a $1,000 de minimis payment. (standishcompliance.com) The cases and the Risk Alert emphasize that claims of “conflict‑free” advice must be substantiated against Form ADV disclosures and that firms must not rely on vague or outdated award language when advertising. (core-cco.com) As part of prior settlements, respondents were required to review all advertising within 45 days and provide written certification of remediation within roughly 50 days, signaling that examiners expect rapid, documented corrective action. (core-cco.com) The practical compliance checklist spotlighted by the Division includes retaining contemporaneous consent for client testimonials, documenting compensation terms for promoters, ensuring disclosures are “clear and prominent” on websites and social posts, and excluding individuals barred by prior disciplinary histories from paid endorsement programs. (standishcompliance.com)