In accordance with Rule 206(4)-1 under the Investment Advisers Act of 1940 (the “Marketing Rule”), we may use testimonials and endorsements in certain marketing materials. This policy outlines how we ensure compliance with applicable SEC regulations when doing so.
Our goal is transparency. If we include testimonials or endorsements in our communications, we do so in a manner that is fair, balanced, and compliant with regulatory requirements.
Definitions
Testimonials
A testimonial is any statement by a current client or investor that:
- Describes their experience with our firm or our supervised persons;
- Directly or indirectly solicits others to become clients; or
- Refers prospective clients to our firm.
Endorsements
An endorsement is any statement by a person who is not a current client that:
- Indicates approval, support, or recommendation of our firm or supervised persons;
- Describes that person’s experience with our firm;
- Directly or indirectly solicits prospective clients; or
- Refers prospective clients to our firm.
Required Disclosures
If we use a testimonial or endorsement, we ensure that clear and prominent disclosures are provided at the time the communication is disseminated.
These disclosures include:
- Whether the person providing the testimonial is a current client.
- Whether cash or non-cash compensation was provided.
- A description of any material conflicts of interest related to the relationship between our firm and the person providing the testimonial or endorsement.
- If compensation was paid, the material terms of that compensation arrangement, including a description of the compensation.
We do not publish testimonials or endorsements unless these disclosures are properly included or we have a reasonable basis to believe they are included.
Ineligible Persons
We do not compensate any person for a testimonial or endorsement if we know or reasonably should know that such person is an “ineligible person” under the Marketing Rule. Where required, we obtain appropriate representations regarding eligibility.
Affiliate Testimonials
Testimonials or endorsements provided by partners, officers, directors, employees, or affiliated persons of our firm are exempt from certain disclosure and written agreement requirements, provided:
- The affiliation is readily apparent or clearly disclosed at the time of dissemination.
- We document the affiliated person’s status at the time the testimonial or endorsement is used.
Broker-Dealer Considerations
When endorsements are provided by SEC-registered broker-dealers:
- If made to retail customers and subject to Regulation Best Interest, additional Marketing Rule disclosure requirements may not apply.
- If made to non-retail customers, applicable disclosure requirements under the Marketing Rule are followed.
Oversight & Documentation
We maintain policies and procedures reasonably designed to ensure compliance with the Marketing Rule. These include:
- Reviewing testimonials and endorsements prior to use.
- Monitoring promoter relationships.
- Conducting periodic reviews or certifications where appropriate.
We may also perform spot checks to confirm that required disclosures are being delivered appropriately.
Adoption & Entanglement
We interpret the definitions of testimonial and endorsement broadly.
Statements that may be considered testimonials or endorsements can include:
- Social media posts where our firm has adopted or become entangled in the communication.
- Statements by business partners or executives that describe their experience working with our firm.
- Statements by clients receiving reduced fees or other benefits tied to referrals.
To prevent unintended adoption or entanglement, we maintain internal review processes governing third-party communications.
Other Legal and Contractual Obligations
Before publishing a testimonial or endorsement, we confirm that:
- Its use complies with applicable federal and state laws.
- It does not violate confidentiality obligations.
- Any necessary contractual amendments have been made to allow required disclosures.
Disclosure
Testimonials and endorsements may not be representative of the experience of all clients. They are not guarantees of future performance or success. Investing involves risk, including possible loss of principal.
Questions
If you have questions regarding this policy or how testimonials and endorsements are used, please contact us through our Contact page.