Compliant Websites for Financial Advisors: What You Need to Know

Compliant Websites for Financial Advisors: What You Need to Know

Financial advisors face a unique challenge with websites: every word you publish could trigger a compliance review. Unlike other industries where you can freely experiment with marketing, your online presence is governed by SEC, FINRA, and state regulations that carry real consequences.

This creates a paralysis for many advisors. Afraid of compliance violations, they either:

• Run bare-bones websites that don't generate leads
• Avoid updating content for fear of triggering review
• Miss opportunities because compliance seems too complex

But compliance doesn't have to kill your marketing. Understanding the rules lets you build an effective, compliant website that generates leads while keeping regulators happy.

Here's what you need to know.

The Regulatory Framework

Your website is considered "advertising" or "communications with the public" under financial regulations. This means everything on your site—including blog posts, testimonials, and social media links—falls under regulatory scrutiny.

SEC Rules (Investment Advisers)

If you're an SEC-registered investment adviser (RIA), your website falls under the Investment Advisers Act of 1940:

Key requirements:

• No false or misleading statements
• No untrue statements of material fact
• No omissions that make statements misleading
• Testimonials have specific rules (more below)
• Performance advertising requires compliance

SEC Marketing Rule (Effective Nov 2022) modernized advertising rules:

• Testimonials and endorsements now allowed with disclosures
• Performance advertising permitted with specific requirements
• Third-party ratings can be used with conditions
• Social media posts are considered advertisements

FINRA Rules (Broker-Dealers)

If you're affiliated with a broker-dealer, FINRA Rule 2210 governs communications:

Categories:

• Retail communications: Any written communication distributed to 25+ retail investors
• Correspondence: Written communication to fewer than 25 retail investors
• Institutional communications: Communications to institutional investors only

Requirements:

• Principal approval before use (for retail communications)
• Fair and balanced presentation
• No exaggerated or misleading claims
• Sound basis for claims
• Risk disclosure when discussing products

State Regulations

State securities regulators also have jurisdiction over advisors registered at the state level. Rules vary by state but generally mirror SEC/FINRA standards.

Website Elements and Compliance

Let's break down common website elements and their compliance considerations:

About Page and Biography

Generally safe:

• Educational background
• Professional experience
• Credentials and certifications
• Areas of focus
• Personal background (family, hobbies)
• Community involvement

Requires care:

• Any claims about performance ("increased client wealth by X%")
• Comparisons to other advisors
• Superlatives ("best," "top," "leading")
• Promises about future results

Best practice: Focus on experience and credentials rather than results. "15 years helping clients plan for retirement" is safer than "helped clients accumulate millions."

Services Description

Generally safe:

• Types of services offered
• Investment philosophies (general)
• Planning process overview
• Client service model
• Fee structures (with appropriate disclosures)

Requires care:

• Claims about specific strategies
• Performance expectations
• Guarantees of any kind
• Comparisons to other approaches

Best practice: Describe what you do, not what results you'll achieve. Include appropriate disclosures about risks and limitations.

Blog Content

Blog posts are advertisements under current rules. This doesn't mean you can't blog—it means you need compliance review.

Generally safe topics:

• Educational content (tax planning basics, retirement account types)
• Market commentary (with appropriate disclosures)
• Industry news and analysis
• Planning tips and strategies
• Client FAQs

Topics requiring extra care:

• Specific investment recommendations
• Market predictions
• Performance discussions
• Product comparisons

Best practice: Create a content library of pre-approved topics. Have a compliance workflow for new content.

Testimonials and Reviews

The 2022 SEC Marketing Rule changed testimonial rules significantly:

What's now allowed:

• Client testimonials with proper disclosures
• Third-party ratings and rankings
• Endorsements from non-clients

Required disclosures:

• Whether the person is a client
• Whether they were compensated
• Material conflicts of interest
• Any material facts about the testimonial

Testimonial best practices:

• Use written testimonials (easier to document)
• Keep records of all testimonials
• Include required disclosures prominently
• Don't cherry-pick only positive reviews
• Be prepared to substantiate any claims

Performance Advertising

If you advertise investment performance:

Requirements:

• Show net performance (after fees)
• Include relevant time periods
• Provide appropriate context
• Disclose material risks
• No cherry-picking favorable periods
• Maintain books and records

Safer alternative: Many advisors avoid performance advertising entirely due to complexity. Focus on process and service instead.

Social Media Links

Linking to social media from your website makes that social media content part of your advertising:

Requirements:

• Monitor social media for compliance
• Archive social media posts
• Apply same standards as website
• Review before posting (where required)

Best practice: Include social media in your compliance procedures. Consider limiting platforms to those you can properly supervise.

Creating a Compliance-Friendly Website

Design for Disclosure

Build disclosure requirements into your design:

Footer disclosures:

• Firm registration information
• Material risks
• Link to Form ADV/CRS
• Privacy policy
• Contact information

Page-level disclosures:

• Blog posts: Investment advice disclaimers
• Service pages: Important disclosures about services
• Testimonials: Required disclosures near testimonials

Make disclosures readable: Small gray text doesn't count if no one can read it.

Content Workflow

Establish a compliant content process:

Pre-approved templates:

• Create compliant templates for common content types
• Have compliance pre-approve template language
• Reduce review time for new content

Review process:

• Draft content
• Internal compliance review
• Make required changes
• Document approval
• Publish
• Archive

Documentation:

• Keep records of all approvals
• Archive all versions of content
• Document who approved and when

Technology Considerations

Your website platform affects compliance:

Requirements:

• Ability to archive all content
• Version history for changes
• Secure hosting
• Privacy compliance (GDPR, CCPA)
• Accessibility compliance

Recommended features:

• Built-in archiving
• Audit trails
• Easy update process for disclosures
• SSL security
• Cookie consent management

Common Compliance Mistakes

Mistake 1: Superlative Claims

Problem: Claiming to be "best," "top-rated," or "#1"

Why it's an issue: Unless substantiated, these claims are misleading.

Solution: Focus on specific, verifiable facts. "Serving [City] since 1995" instead of "The best advisors in [City]."

Mistake 2: Performance Promises

Problem: Implying guaranteed returns or specific outcomes

Why it's an issue: Investment performance can't be guaranteed.

Solution: Use language like "work toward goals" rather than "achieve financial independence."

Mistake 3: Missing Disclosures

Problem: Required disclosures are absent or buried

Why it's an issue: Regulators specifically check for proper disclosures.

Solution: Build disclosure requirements into website templates. Make them visible and readable.

Mistake 4: Stale Content

Problem: Outdated information that's no longer accurate

Why it's an issue: Outdated information can be misleading.

Solution: Schedule regular content reviews. Update or remove outdated content.

Mistake 5: Testimonials Without Disclosures

Problem: Using client testimonials without required disclosures

Why it's an issue: Even with new testimonial rules, disclosures are mandatory.

Solution: Create a standard testimonial format that includes all required disclosures.

Mistake 6: Ignoring Social Media

Problem: Social media links on website but no compliance oversight

Why it's an issue: Linked social media is considered part of your advertising.

Solution: Include social media in your supervision procedures or don't link to it.

Working With Compliance

For advisors with compliance departments:

Streamlining Approval

Pre-meeting preparation:

• Provide complete drafts
• Highlight areas of potential concern
• Suggest specific language
• Reference similar approved content

Build relationships:

• Understand compliance concerns
• Learn what triggers extra scrutiny
• Find mutually acceptable solutions

Create efficiency:

• Develop approved content libraries
• Use pre-approved templates
• Batch similar requests together

Documenting Approvals

Maintain clear records:

• Who approved the content
• When it was approved
• What version was approved
• Any conditions on approval
• Who has authority to approve

Marketing Within Limits

Compliance doesn't mean boring. You can still market effectively:

Lead With Value

Create genuinely helpful content:

• Educational resources
• Planning tools and calculators
• Market insights and analysis
• Answers to common questions

Educational content has fewer compliance hurdles and builds trust.

Focus on Service

Differentiate on service, not performance:

• Your planning process
• Client experience
• Communication style
• Technology and tools
• Accessibility and availability

Build Credibility

Establish expertise through:

• Thought leadership content
• Speaking engagements
• Media appearances
• Published articles
• Community involvement

These activities build credibility without triggering performance advertising rules.

Nurture Relationships

Use your website to nurture prospects:

• Email newsletter signup
• Resource downloads
• Webinar registrations
• Consultation scheduling

Stay in touch with compliant content until they're ready to engage.

The Bottom Line

Compliance requirements for financial advisor websites are real but manageable. The key is understanding the rules, building compliance into your process, and focusing on content that serves both prospects and regulators.

A compliant website can still be:

• Professionally designed
• Content-rich
• Lead-generating
• Personality-driven
• Effective marketing

Don't let compliance fear prevent you from having an effective online presence. With the right approach, you can build a website that generates leads while keeping you out of regulatory trouble.

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