Industry professionals share how client testimonials, press interviews, industry recognition, and community involvement can help advisors strengthen credibility with prospects.

F​inancial advisors have long relied on referrals to build trust with prospective clients. But referrals are no longer the only form of third-party credibility available to advisory firms.

More advisors are also using client testimonials, now that the Securities and Exchange Commission (SEC) permits them under certain conditions. Testimonials can work alongside other credibility-building tools, including press interviews, industry awards and credentials, and recognition within an advisor’s community.

A changing regulatory landscape

​In 2020, the SEC amended its marketing rule, Rule 206 (4)-1, first adopted in 1961, to give advisors more leeway to use client testimonials in advertisements and other materials. The change reflected regulators’ recognition that marketing technology has evolved significantly, as has the way prospective clients use the internet—and social media in particular—to evaluate service providers.

“Consumers today often rely on these forms of communication to obtain information, including reviews and referrals, when considering buying goods and services,” the SEC wrote in the final rule. “Advisers and third parties also rely on these same types of outlets to attract and refer potential customers.”

The SEC added, “We believe the final marketing rule will allow advisers to provide existing and prospective investors with useful information as they choose among investment advisers and advisory services, subject to conditions that are reasonably designed to prevent fraud.”

The SEC marketing rule applies to advisors registered with the federal agency. State-registered advisors in many states still cannot use client testimonials. However, the North American Securities Administrators Association announced in May that its membership, composed of state securities regulators, voted to adopt amendments to four model rules governing investment-advisor advertising to more closely align with federal standards.

“The model rules provide a framework for states to permit state-registered investment advisers to utilize testimonials, endorsements and specific performance reporting within specified guardrails,” the association wrote.

The role of social proof

Josh Woodward of Mastermind Advisor Marketing Inc. says testimonials can be a powerful way to attract prospective clients, particularly when existing clients communicate that their advisor is competent, honest, and genuinely invested in their outcome.

“A prospective client researching advisors is not just looking for qualifications,” Woodward writes. “They are looking for evidence that someone like them trusted this advisor and came out better for it. That is the social proof mechanism at work, and it is one of the most reliable drivers of human decision-making.”

Researchers at the University of Texas are also studying the role testimonials can play in communicating an advisor’s broader value. Graduate students there are analyzing thousands of client testimonials posted on the advisor directory Wealthtender to calculate what they call “relationship alpha”—the perceived value of an advisor from the client’s point of view.

Ramesh K.S. Rao, a finance professor and founding director of the school’s Wealth Management Center, says this metric could be even more powerful than measures such as assets under management or client portfolio performance.

Clients are “no longer just focusing on the stock-market returns provided by advisors,” Rao says.

He adds, “Advisors have to show how they’re contributing value in other ways. ‘Wealth’ is defined very broadly to include not just the money you have in your bank but also what you can do with the money to achieve your life goals. … When the clients are changing, the professionals have to change.”

That shift has implications for how advisors present themselves to prospective clients. Technical qualifications and investment experience still matter, but prospects may also look for outside signals that an advisor is trustworthy, responsive, and able to deliver value beyond portfolio management.

We asked three industry professionals to share their strategies for soliciting testimonials that are both SEC-compliant and effective at attracting new clients, as well as other methods to build third-party credibility.

Building trust through third-party validation

Adam Koos, CFP, CMT, CEPA ● President and senior financial advisor at Libertas Wealth Management Group ● Columbus, OH​

Asking for testimonials

“We bring up the subject of testimonials at the end of client review meetings, usually after asking two questions: ‘Is there anything you’d like to get out of these meetings that you’re not already getting from us?” and ‘Is there anything we could be doing better?’

“We also reach out with a follow-up email after sending clients surveys. If they complete the survey, we thank them and ask them to leave us a review on Google, with this explanation: ‘We’ve become more intentional about our web presence since COVID, as more people shop for services and do research online. So, if you don’t mind taking a minute or two, just CLICK HERE, and you’ll be sent directly to our Google Business page. It would be a huge help!’

“If they don’t fill out a survey, we reach out a month later, just to touch base regarding a Google review.”

Using reviews compliantly

“To make sure testimonials are compliant with the SEC’s marketing rule, we ensure no one other than the individual giving the testimonial has control over the review. We do not repost it on our website, include it in articles, or highlight it in videos without using a compliant WordPress widget that pulls the reviews directly from Google to our web page. The tool eliminates the need for copying and pasting, which is illegal because the SEC doesn’t want us to control the language.

“As a result, the widget pulls reviews from our Google Business page randomly rather than allowing us to pick only the good ones. This is also part of the SEC compliance requirement. We want to make sure that our staff cannot interfere with the review being given, and we also want the requests to go to all clients, not select individuals we pick and choose.”

Earning media visibility and recognition

“We also give press interviews and contribute articles to various publications. In the ‘In the Media’ section of our website, we include a slide that highlights where our interviews or articles can be found. We also place them on a rotating marquee screen in our office and often refer to them in biographical statements.

“I would shy away from any of the pay-to-play awards, where an outlet asks you for money, or awards that have little credibility. In other words, don’t just get recognition for recognition’s sake. It needs to be earned and, ideally, come from prominent news outlets.

“To make sure press interviews are compliant, aside from staying abreast of changes in SEC laws, we lean on our compliance attorney.

“We have been recognized by many industry sources, both locally and nationally. Garnering this recognition starts with being intentional. To win an award and be recognized, you have to live and preach what the award in question evokes.

“For instance, the Better Business Bureau Torch Award for Ethics and Trust is the award I’m proudest of in 25 years of doing this for a living. It came from years of doing the right thing, both internally and with our clients, even if it meant making less money for the firm.

“From there, be visible and be generous with your knowledge. Media recognition, from respected sources such as The Wall Street Journal, MarketWatch, Proactive Advisor Magazine, and Seeking Alpha, came from consistently putting out good content, being quotable, and making ourselves available when journalists needed a credible voice.”

Building credibility through credentials and community

“Other ways to garner third-party credibility include professional designations. Credentials like the CFP, CMT, or CEPA aren’t just letters after your name. They signal to prospective clients and peers alike that you’ve invested in mastery, not just the minimum required competency.

“Association memberships help as well. Being a member of the National Association of Personal Financial Advisors, or NAPFA, for instance, carries real weight because membership requires adherence to a fee-only fiduciary standard. When a prospect finds you through NAPFA’s directory, much of the vetting has already begun, well before you even have an intro call.

“Speaking and teaching has always been beneficial, and it’s fun. Whether it’s a local financial-literacy event, a conference panel, an in-person event that you put on, or a virtual webinar, putting yourself in front of an audience in an educational role positions you as an authority on the subject matter. You’re not selling—you’re teaching.

“Community and charitable involvement probably don’t receive the props they deserve. But when your firm is visibly invested in the community, or when you donate time, money, or both to charitable organizations, that means a lot. It reinforces that who you are is deeper than just a financial advisor or a business owner. It builds the kind of soft trust that’s very hard to manufacture.”

Vijay Khetarpal, CFP, ChFC, CLU • President and CEO of Integrity Financial Group ● Washington, D.C., metro area​

Reinforcing referral-based trust

“All our new clients basically come from referrals, so they are already predisposed to do business with us. A good number of them likely check our website and will see client testimonials. I think that can only reinforce their positive predisposition toward our firm, and that is helpful.”

Working within compliance review

“Not all the testimonials we get end up on our website. I first send them to my broker-dealer’s compliance department for approval, based on broad guidelines about what clients can and cannot include.

“Sometimes the compliance department either rejects a testimonial outright or asks us to make modifications. For example, a client included their full name, state of residence, and contact information in case a prospect wanted to pick their brain before engaging with me. But our back office told us to remove all of that information from the testimonial.

“Other times, the compliance department wants the client to rephrase something, but in those cases, we don’t bother because we don’t think it’s fair to the client if the modification would be burdensome. For example, if clients write that their investments provided a 20% return last year, we can’t guarantee that, so the compliance department wants them to write something else—but then it’s not really a testimonial.

“The compliance guidance also says I cannot pay a client cash or provide in-kind compensation for a testimonial. I also cannot cherry-pick which clients to ask for a testimonial.

“When I have client meetings, at the end of the conversation, I ask that if they feel comfortable, could they take a couple of minutes and post a testimonial on the website. We have the capability on our website for clients to post comments, which then automatically go to compliance for approval. The guidelines call for asking clients to focus on customer service and responsiveness, but most people do that on their own.”

Using media and recognition selectively

“Outside of Proactive Advisor Magazine, I’ve done one press interview, for the local Washingtonian magazine, but I don’t do it on a regular basis. Some people claim they can get us on TV for a fee, but I want to avoid that. The best way to do that is to be invited and not pay for it.

“Washingtonian reached out to me for an article about why readers looking for an advisor should consider our firm—what our industry capability was and how we conducted our business. We include this article in our introductory packet for prospective clients.

“My advice for giving press interviews: You should articulate how you are different from the majority of other advisors. That’s going to make you stand out.

“In addition, industry recognition is something I am proud of. Some industry organizations are open only to professionals who have reached certain production levels. I qualified for the Million Dollar Round Table’s Top of the Table for many years. I am also a member of the Forum 400, which is limited to the top 400 life insurance professionals in the U.S.”

Cultivating advocates among allied professionals

“The best thing for third-party credibility is when other people become your advocate, your raving fan. One of the best ways to do that is to cultivate relationships with top allied professionals, such as CPAs and attorneys. They often will refer clients to you if they see you as an independent educator who can help them increase revenue and client satisfaction—not as someone focused only on their own revenue and just trying to get referrals.”

Jon Cook • Speaker, YouTube creator, and founder of Keynote Content • Denver, CO​

Understanding the compliance landscape

“If an advisor is state-regulated, they likely cannot use testimonials under their state’s regulations, though efforts are underway to change this through the North American Securities Administrators Association’s framework for state securities regulators. Federally covered advisors can use testimonials within SEC restrictions. Advisors should consult with their compliance representative about their firm’s ability to use testimonials before acting in this area.”​

Keeping testimonials focused on experience

“In testimonials, clients should focus on their experience rather than the results. For example, ‘Our advisor Dave understands our situation and helps point us in the right direction. We can ask questions that other advisors shy away from, and he’s not afraid to respond, even if it’s to say he doesn’t know the answer. Typically, he is able to give us good information that fits our situation in a timely manner.’

“I like having written testimonials. While video testimonials are incredibly powerful, if a client says ‘um’ or asks to start over, and you edit the video, you will need to disclose that it has been edited. Testimonials cannot be materially altered, and an edited testimonial never looks as good to a prospective client as one that hasn’t been edited.

“Under the SEC marketing rule, advisors must include a clear disclosure about whether the testimonial is from a current client. Are there any material conflicts of interest in providing a testimonial? Advisors cannot cherry-pick testimonials. Nothing can create a misleading overall impression.

“You must disclose whether a client was compensated for a testimonial, in cash or noncash compensation, even if it was a gift card. I tell advisors that compensation should be a ‘thank you’: ‘Please accept my gratitude as compensation.’”

Using media opportunities strategically

“Regarding press interviews, if your target market is restaurant franchisees, find ways to do press interviews in specialty magazines that appeal to them. Pitch a topic that would interest them, like building wealth to fund a start-up restaurant.

“For general financial-planning topics, don’t just write ‘The market is volatile.’ That’s just more noise. Instead, write something like, ‘The market right now reminds me of 2008. Here’s what we did then, and here’s what we’re doing now.’

“Before you give a press interview or write an article, start with compliance. Share your vision with them, ask how to do it correctly, and then use that guidance as a blueprint.

“Any time an advisor gets an opportunity to be interviewed, they should let the reporter know they will check with their compliance department ahead of time to see if there are any guardrails. If performance data is to be posted publicly, it needs to include the right disclosures and the right time period, like ‘the trailing 12-month period.’”

Turning expertise into visibility

“If you want to get named on a ‘best’ list that has criteria that you fit, don’t be afraid to nominate yourself. Make a compelling case for yourself. It’s essentially like a planner presentation with prospective clients: Explain how your perspective, background, and experience are collectively different from others.

“I personally don’t really care about awards and recognition. Focus more on how you can be markedly better at what you do. If you grow your expertise and connect with people, the recognition will come.

“Advisors should speak at local chambers of commerce and trade associations in their target market. Advisors can then reach out to local reporters or bloggers who cover these organizations and provide a transcript of the presentation for them to write about, such as how near-retirees can spot AI scams that could drain their bank accounts. Advisors can tell reporters they would be happy to provide fresh quotes. By doing this, advisors are essentially delivering on a silver platter a well-formed article on a topic of interest to the entire community.”

The professionals interviewed for this article approached credibility in different ways, but each returned to a similar point: Third-party credibility works best when it reflects the substance behind the advisor’s work. Adam Koos sums it up this way: “Third-party credibility isn’t something you engineer—it’s something you earn, and it compounds over time the same way a good investment portfolio does.”

“I believe it starts with being genuinely excellent at what you do, operating with complete transparency, and making your clients’ interests the non-negotiable center of every decision,” he says. “Credibility that isn’t backed by substance will eventually collapse, and in a trust-based business like ours, that collapse is almost certainly catastrophic.”

For advisors looking for additional guidance, SmartAccess offers a detailed Financial Advisor Marketing Compliance Checklist.

The opinions expressed in this article are those of the author and the sources cited and do not necessarily represent the views of Proactive Advisor Magazine. This material is presented for educational purposes only.

CFP and Certified Financial Planner are registered trademarks of the Certified Financial Planner Board of Standards Inc. (CFP Board). CMT and Chartered Market Technician are registered trademarks of the CMT Association. Chartered Financial Consultant, ChFC, Chartered Life Underwriter, and CLU are registered trademarks of The American College of Financial Services.