The Texas State Securities Board has just approved a change that would allow advisors registered to practice in the Lone Star state to post five-star reviews and positive client testimonials online.
The change reverses a longstanding rule prohibiting state-registered advisors from using testimonials and soliciting reviews. That's in contrast to the SEC's 2020 Marketing Rule, which took effect for federally registered advisors in 2021.
One marketing consultancy focused on wealth firms and advisors painted the decision as a win for approximately 1,400 Texas-based advisors and millions of consumers, who might have previously assumed local state-registered advisors were less capable than their federally registered counterparts based on the absence of positive reviews alone.
In a Thursday statement, Brian Thorp, founder and CEO of Wealthtender, commended the decision, saying it "will ensure Texans can fairly evaluate financial advisors, whether they are Texas small business owners or affiliated with an SEC-registered wealth management firm.”
Wealthtender pointed to the 2023 BrightLocal Consumer Review Survey, which found that 81 percent of consumers consider online reviews important when making decisions. It also refenced the 2024 Ficomm financial advisor marketing report, which revealed 45 percent of all consumers select their financial advisor based on digital marketing, including 57 percent of individuals under 44.
While around half of US states now allow locally registered advisors to post online reviews, that still leaves an unlevel playing field for smaller advisors in roughly two dozen other states. Wealthtender highlighted California as a particularly vital holdout, with 2,744 state-registered advisors – as counted in the NASAA Investment Adviser Section 2024 Annual Report – unable to leverage client reviews on the web
“It’s beyond time for the regulators in California and elsewhere to follow in the footsteps of Texas and nearly half the states that have modernized their rules that will ultimately benefit millions of Americans as they prepare to hire financial advisors,” Thorp said.
Elsewhere in Utah, Raymond James also welcomed another experienced advisor from D.A. Davidson.
A federal appeals court says UBS can’t force arbitration in a trustee lawsuit over alleged fiduciary breaches involving millions in charitable assets.
NorthRock Partners' second deal of 2025 expands its Bay Area presence with a planning practice for tech professionals, entrepreneurs, and business owners.
Rather than big projects and ambitious revamps, a few small but consequential tweaks could make all the difference while still leaving time for well-deserved days off.
Hadley, whose time at Goldman included working with newly appointed CEO Larry Restieri, will lead the firm's efforts at advisor engagement, growth initiatives, and practice management support.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.