Texas became the first state to adopt marketing provisions for investment advisers by reference to SEC rules, with the new requirements effective March 2025.
The approach aligns Texas-registered advisers with the SEC Marketing Rule (Rule 206(4)-1), simplifying compliance for firms that operate across both state and federal registration.
Under the Texas approach, state-registered investment advisers must comply with the same testimonial, endorsement, performance advertising, and third-party ratings standards that apply to SEC-registered advisers.
This development is significant because it demonstrates a potential pathway for other states to modernize their advertising requirements without developing independent rules from scratch.