Are You Supervising Third-Party Marketers Properly?

With the SEC’s modernized Marketing Rule opening the door for investment advisers to use third-party marketers, influencers, and promoters more freely, firms must also take on a critical responsibility: proper supervision. Whether you're working with a paid solicitor or a social media influencer, you are accountable for their compliance with regulatory requirements.

Failing to properly supervise third-party marketers can expose your firm to regulatory scrutiny, enforcement actions, and reputational damage.

Why Supervision Matters

Third-party marketers represent your firm and are often the face of your brand to prospective clients. As a result, the SEC holds RIAs responsible for ensuring these individuals or firms comply with the Marketing Rule — particularly when it comes to disclosures, compensation, and advertising conduct.

Key Compliance Requirements

✅ Written Agreement

If you compensate a third-party marketer, you must have a **written agreement** that includes:

- Scope of promotional activities

- Required disclosures

- Compliance responsibilities

- Monitoring expectations

✅ Prominent Disclosures

Your third-party marketer must clearly disclose:

- That they are providing a testimonial or endorsement

- Whether they are a current client

- Whether they are compensated and the nature of the compensation

- Any material conflicts of interest

These disclosures must be delivered at the time of the promotion and in plain, easy-to-understand language.

✅ Disqualification Check

Ensure the marketer is **not a “bad actor”** disqualified under the Marketing Rule. This includes individuals with certain disciplinary histories or regulatory sanctions.

✅ Ongoing Supervision and Monitoring

It’s not enough to sign a contract and walk away. RIAs must:

- Monitor the marketer’s activity regularly

- Review promotional content for compliance

- Provide training and guidance as needed

- Address any red flags or violations immediately

✅ Recordkeeping

RIAs must maintain:

- Copies of promotional materials

- Written agreements

- Due diligence documentation

- Records of oversight activities and any disciplinary action taken

Best Practices

- Assign a compliance officer or team to oversee third-party relationships

- Use a checklist to vet new marketers before engagement

- Provide compliance training to promoters

- Require pre-approval of all advertisements or promotional content

- Periodically audit all marketing activity tied to your brand

Final Thoughts

Third-party marketers can be a valuable asset in building awareness and attracting clients, but only if their activities are carefully managed and aligned with regulatory expectations. As an RIA, it’s your job to supervise them with the same diligence you’d apply internally. With clear agreements, active oversight, and documented controls, you can protect your firm — and promote it — the right way.