← All rule pagesRule 206(4)-1(e)(1)
Definition: Advertisement
definitionadvertisement
Excerpted verbatim from the rule
Advertisement means: (i) any direct or indirect communication an investment adviser makes to more than one person, or to one or more persons if the communication includes hypothetical performance, that offers the adviser’s investment advisory services with regard to securities to prospective clients or private fund investors, or offers new advisory services with regard to securities to current clients or private fund investors, but does not include certain enumerated communications (e.g., extemporaneous live oral communications, regulatory filings, certain one-on-one communications); and (ii) any endorsement or testimonial for which an adviser provides compensation, directly or indirectly.
Edge cases — what counts as this
LinkedIn
An adviser posts on their personal LinkedIn account about market views, using their job title and tagging the firm.
Why this counts: The SEC treats public communications by associated persons that promote the adviser’s services as advertisements. Personal vs. professional account is a distinction without compliance difference if the post promotes the firm.
How to handle it
Either treat the post as an advertisement (full Marketing Rule compliance — disclosures, no testimonials without (b)(1)(i) trio, etc.) or strip any reference to the firm and any market views that read as a sales pitch.
Pitch deck
An adviser is interviewed as a guest on a third-party podcast about market views.
Why this counts: A guest appearance can be an advertisement if the adviser is promoting the firm’s services. The host’s editorial framing doesn’t shield the adviser — if the segment promotes the firm, the recording + show notes are an advertisement under (e)(1).
How to handle it
If the appearance discusses the firm’s services, treat the recording + the show notes as an advertisement and apply the rule. Otherwise stay strictly on educational topics with no firm promotion.
Brochure
A specific email to one prospective client describing the firm’s services.
Why this counts: One-on-one communications are explicitly excluded from the advertisement definition (with carve-outs for hypothetical performance and certain other content). A personalized prospect email is not an advertisement under (e)(1).
How to handle it
No action needed for the (e)(1) definition itself. But note that one-on-ones don’t exempt you from (d)(6) if you include hypothetical performance — that triggers the rule regardless of audience size.
Run Rule 206(4)-1(e)(1) on your own copy.
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