Testimonial Usage Guidance
WHAT IS
THE DIFFERENCE BETWEEN A TESTIMONIAL AND ENDORSEMENT?
A testimonial
is any statement by a current client advised by the investment adviser:
· About the client
or investor’s experience with the investment adviser or its supervised persons.
· That directly or
indirectly solicits any current or prospective client to be a client of the
investment adviser; or
· That refers any
current or prospective client or investor to be a client of the investment
adviser.
An endorsement
is any statement, written or oral, by a person other than a current client
that:
· Indicates
approval, support, or recommendation of the investment adviser or its
supervised persons or describes that person’s experience with the investment
adviser or its supervised persons.
· Directly or
indirectly solicits any current or prospective client or investor to be a
client of, or an investor in a private fund advised by, the investment adviser;
or
· Refers any current
or prospective client or investor to be a client of, or an investor in a
private fund advised by, the investment adviser.
NOTE: A compensated (cash or non-cash)
endorsement is a “solicitation or referral” and will follow our Solicitor’s Policy and Procedures. Compensated testimonials are
strictly prohibited.
HOW DO
I GET A TESTIMONIAL OR ENDORSEMENT (non-compensated) AUTHORIZED FOR USE?
Any
testimonial or endorsement an advisor wants to use in any marketing material
must go through Compliance review prior to use. The testimonial or endorsement
can be submitted by a case to Compliance through the Power Portal. Select the
type of retail communication for the Case Topic, just as with any other content
review. Compliance will review each testimonial individually for material
information specific to the facts and circumstances of that testimonial. If
approved to use, Compliance will provide the appropriate disclosure language
for that specific testimonial. While the disclosure language may substantially
be similar for most testimonials, each testimonial must be reviewed
independently of any others and specific disclosures must be made of any material
information related to that testimonial. NOTE: If you want to be
able to utilize LinkedIn Endorsements on your LinkedIn profile, refer to the
Updated Disclosure Guidance for the appropriate disclosure language to add to
your LinkedIn profile in the About section.
QUESTIONS
COMPLIANCE WILL ASK
With any
testimonial or endorsement being submitted for review, there are some basic
questions you should be prepared to answer. Below are a list of initial
questions Compliance will ask. This list may not be exhaustive, is subject to
change and may lead to additional questions if more clarification is necessary.
However, it should give you a baseline of what to expect when submitting
testimonials for use.
1. Is this from a
client or non-client?
2. Is there any compensation
being exchanged for this testimonial or endorsement?
3. Was this
testimonial or endorsement solicited by you?
4. If a client, how
long have they been a client?
5. If a client, does
this client have any special considerations they receive that most other clients
do not (i.e. reduced fee schedules, customized portfolios, etc.)?
6. If a non-client,
what is the nature of the relationship you have with the endorser? And how long
has that relationship been in place?
7. Is there any other
material information regarding your relationship or the content of the
testimonial or endorsement that would be considered important context for
potential clients to understand?
These
questions will serve as the building blocks of reviewing and developing
appropriate disclosures for each testimonial or endorsement submitted for
review.
ADDITIONAL
INFORMATION
Additional
information on the Advertising Rule can be found on the Power Portal Knowledgebase. This includes the Advertising Rule Policy, Advertising Rule Guidance, Advertising Rule FAQs or the Updated Disclosure Guidance materials.
If you
have questions about this guidance or any particular advertising scenario,
please reach out to Compliance and schedule time with us.
Thank you,
The Mutual
Compliance Team
