NASAA Marketing Rule
The NASAA Model Rule on Advertising and Marketing establishes standards for how state-registered investment advisors can promote their services, present performance data, use testimonials and endorsements, and communicate with the public.
Key Requirements
Fair and Balanced Advertising
All advertising must be fair, balanced, and not misleading. Advisors must ensure that marketing materials do not contain untrue statements of material fact or omit information necessary to make statements not misleading.
Performance Presentation Standards
Net-of-fees performance must be shown alongside any gross performance. Time periods must be clearly disclosed, and hypothetical or backtested performance requires prominent disclaimers.
Testimonial and Endorsement Disclosures
Testimonials and endorsements must include disclosures about compensation, conflicts of interest, and whether the person providing the testimonial is a client of the advisor.
Third-Party Rating Disclosures
When displaying third-party ratings or rankings, advisors must disclose the date, criteria, and the identity of the rating organization, along with any compensation provided.
Social Media Compliance
Social media posts are considered advertising and must comply with all marketing rule requirements. Advisors must maintain records of all social media communications.
Books and Records for Advertisements
Copies of all advertisements must be retained for at least five years, including drafts and internal review documentation.
State Adoption Status
Adoption of NASAA model rules varies by state. Some states adopt the model rule directly, while others have their own rules covering the same requirements.
Visit the State Adoption Tracker for a complete per-state breakdown. Data sourced from NASAA model rule matrix and NV 2024 Legislative Survey. Last verified March 2026.
Common Violations
Avoid these frequently cited deficiencies during state examinations.
Misleading Performance Claims
Presenting cherry-picked time periods, showing gross performance without net, or failing to disclose benchmark comparisons.
Inadequate Testimonial Disclosures
Using client testimonials without proper compensation disclosures or conflict of interest statements.
Unsubstantiated Claims
Making claims about expertise, rankings, or results without adequate documentation to support them.
Missing Social Media Records
Failing to archive and retain records of social media posts and interactions related to advisory services.
Best Practices
Frequently Asked Questions
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