Testimonial/endorsement: required disclosure of client / non-client status

An advertisement may not include any testimonial or endorsement, and an adviser may not provide compensation, directly or indirectly, for a testimonial or endorsement, unless the adviser discloses, or reasonably believes that the person giving the testimonial or endorsement discloses, the following at the time the testimonial or endorsement is disseminated: That the testimonial was given by a current client or investor in a private fund advised by the investment adviser, and the endorsement was given by a person other than a current client or investor in a private fund advised by the investment adviser, as applicable.