Practice question, Marketing
Show every advertisement in the review period that used a testimonial, endorsement or third-party rating, with the disclosures made, any compensation paid and the oversight records for each promoter.
Taft practice question: not an official regulator question. SEC Division of Examinations, United States (federal). For SEC-registered investment advisers. Evidence category: Marketing materials.
Not legal advice. A practice prompt for rehearsing how your team explains its controls and evidence. No scoring, no model answer, no implication that a regulator will ask these words.
Authored by Taft. Last checked 2026-11-09. All questions.
Why it is relevant
A December 2025 staff risk alert reported advisers using testimonials and endorsements that did not appear to comply with all or some of the requirements for compensated and uncompensated testimonials and endorsements.
Sources: [1] Section II.A
Evidence to locate
Suggested, not mandatory. A regulator's actual request list governs.
Testimonials and endorsements, including payments made and compensation received, and third-party ratings and rankings.
Sources: [2] Attachment, Marketing and Advertising
Follow-up prompts
How do you confirm a promoter is not an ineligible person before paying for an endorsement?
Applicability
- Applies to
- Advisers registered or required to be registered with the SEC.
- Does not apply to
- Not stated.
Cite
Cite the official source first. Then: Taft Compliance Group, Exam-prep toolkit (draft), question q-marketing-testimonials, https://taftcompliance.com/resources/exam-prep-toolkit/questions/q-marketing-testimonials, last checked 2026-11-09.
Sources
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Additional Observations Regarding Advisers' Compliance with the Advisers Act Marketing Rule (staff statement). regulator guidance. Section II.A, Observations Related to the Testimonials and Endorsements Provisions.
https://www.sec.gov/files/exams-riskalert-mrkt-rule-2512-508.pdf
Checked 2026-11-09; published 2025-12-16.
Supporting passage
The Marketing Rule's Testimonials and Endorsements Provisions prohibit the use of testimonials and endorsements in advertisements unless the adviser satisfies certain disclosure and oversight conditions. These Provisions also prohibit advisers from compensating certain ineligible persons for providing testimonials or endorsements. The staff observed advisers using testimonials and endorsements that did not appear to comply with all or some of the requirements for both compensated and uncompensated testimonials and endorsements.
U.S. Securities and Exchange Commission, Division of Examinations, Risk Alert: Investment Advisers: Assessing Risks, Scoping Examinations, and Requesting Documents (staff statement). regulator guidance. Attachment, Typical Initial Information Examiners Request of Investment Advisers: Conflicts of Interest and Insider Trading; Marketing and Advertising; Custody.
https://www.sec.gov/files/risk-alert-ia-risk-and-requesting-documents-090623.pdf
Checked 2026-11-09; published 2023-09-06.
Supporting passage
Code of Ethics attestations. Exemptions from Code of Ethics for supervised persons. Reports of securities transactions reported by access persons. Fee splitting or revenue sharing arrangements. Testimonials and endorsements, including payments made and compensation received. Third-party ratings and rankings. Custodian identification and contact information for entities that maintain custody of client assets. Surprise examination documentation, such as engagement letters, client account lists, and reports, results, and recommendations. Auditor engagement letters, opinions, and findings. Custodial confirmation of positions for specific clients.
Changes to this question
No released changes.