Dataset History
Jun 2026
Initial publication. All enforcement actions through September 2025 captured. Risk alert timeline complete through December 2025. M&A endorsement sweep noted as open/ongoing.
Forthcoming
M&A endorsement sweep results when announced; any additional Atkins-era actions; 2025 FAQ updates to be cross-referenced against violation categories.
The Marketing Rule in one paragraph. Rule 206(4)-1, as amended in December 2020 with a compliance date of November 4, 2022, replaced the old advertising rule (Rule 206(4)-1) and the cash solicitation rule (Rule 206(4)-3) with a single consolidated framework. It governs all "advertisements" by registered investment advisers — broadly defined to include websites, pitch decks, DDQs, newsletters, social media, and performance track records. The rule's seven general prohibitions apply to all advertisements. Specific provisions govern hypothetical performance, testimonials and endorsements, third-party ratings, and performance presentations. The compliance date is the dividing line for this dataset — no enforcement under the amended rule was possible before November 2022.
Total Enforcement Actions
27+
Aug 2023 — Sep 2025
(amended rule only)
Total Penalties (Amended Rule)
~$3.7M
Small vs. off-channel;
largest single: $325K
Risk Alerts Issued
4
Sep 2022, Jun 2023,
Apr 2024, Dec 2025
Actions Under Atkins
1
Sep 4, 2025
Meridian Financial
Active Sweeps
1
M&A endorsement sweep
ongoing as of Jun 2026
Violation Categories — Amended Marketing Rule Enforcement (2023–2025)
Actions may involve multiple violation categories. Based on SEC orders and press releases.
16
Hypothetical
Performance
9
Testimonials /
Endorsements
9
Unsubstantiated
Statements
All Enforcement Actions — Amended Rule (Chronological)
| Date |
Firms |
Violation Category |
Combined Penalty |
Key Facts |
| Aug 21, 2023 |
1 |
Hypothetical Performance |
$192,500 |
First enforcement action under amended Marketing Rule. Fintech adviser; hypothetical model performance advertised on public website without required policies and procedures; mass audience. |
| Sep 11, 2023 |
9 |
Hypothetical Performance |
$850,000 |
First sweep wave. All nine firms advertised hypothetical/backtested performance on public websites without required policies and procedures. Firm sizes ranged $42M–$1.28B AUM. Penalties $50K–$175K each. Two firms also charged with books and records violations. |
| Mar 18, 2024 |
2 |
AI Washing |
$400,000 |
Delphia (USA) Inc. ($225K) and Global Predictions, Inc. ($175K). First AI-washing actions under Marketing Rule. Both firms made false or misleading statements about their use of AI in investment processes. Delphia managed private funds and 29,000+ retail accounts. |
| Apr 2024 |
~5 |
Hypothetical Performance |
$200,000 |
Second hypothetical performance sweep. Five advisers charged for advertising model/backtested performance to general public without required policies. Penalties $20K–$100K each — lower per-firm than Sep 2023 wave, suggesting smaller firms. |
| May 2024 |
5 |
Hypothetical PerformanceUnsubstantiated |
~$200,000 |
Third sweep wave. Accompanied by SEC Risk Alert (April 2024) on general Marketing Rule compliance. Expanded beyond hypothetical performance to include unsubstantiated statements. SEC Risk Alert identified 30+ commonly observed deficiencies. |
| Sep 9, 2024 |
9 |
UnsubstantiatedTestimonialsThird-Party Ratings |
$1,240,000 |
Fourth sweep wave and most varied by violation type. Included unsubstantiated statements, testimonials and endorsements without required disclosures, and third-party ratings violations. Penalties $60K–$325K (largest single penalty in Marketing Rule sweep). Shift from hypothetical performance to substantive content issues. |
| Nov 2024 |
1 |
ESG Misrepresentation |
$150,000 |
Adviser charged for misleading statements about ESG integration in investment process. First Marketing Rule action with ESG as primary violation category under amended rule. |
| Sep 4, 2025 |
1 |
Conflicts DisclosureUnsubstantiated |
Not disclosed |
First Marketing Rule enforcement action under Atkins. Meridian Financial, LLC. Website claimed firm "refuse[d] all conflicts of interest" — directly contradicted by Form ADV conflicts disclosures. Charged under Rule 206(4)-1(a)(2) (unsubstantiated material facts). Also found inadequate annual compliance reviews in 2023 and 2024. Penalty not yet publicly disclosed. |
| 2026 (ongoing) |
TBD |
Endorsements (M&A) |
TBD |
Active sweep. Exam staff running sweep on endorsement activity in connection with adviser M&A transactions — i.e., acquiring advisers using client testimonials or endorsements from the acquired firm's clients without proper disclosures. Results not yet announced. |
SEC Risk Alert Timeline — Marketing Rule
September 19, 2022
Risk Alert #1 — Initial Exam Observations
Issued before any enforcement actions. Described exam observations regarding adviser policies, Form ADV disclosures, and general compliance infrastructure. The "warning shot" — enforcement began less than a year later.
June 8, 2023
Risk Alert #2 — Phase 3 Exam Focus
Announced continuation of Marketing Rule exam sweep (Phase 3). Signaled that hypothetical performance and performance presentation were the near-term enforcement targets. First enforcement action followed two months later.
April 17, 2024
Risk Alert #3 — 30+ Deficiencies Identified
Most comprehensive alert. Listed 30+ specific deficiencies observed across Form ADV, compliance rule, books and records, and the Marketing Rule's general prohibitions. Telegraphed the shift from hypothetical performance to unsubstantiated statements, testimonials, and third-party ratings — the violation categories that dominated the Sep 2024 wave.
December 2025
Risk Alert #4 — Testimonials, Endorsements, Third-Party Ratings
Fourth alert; first under Atkins. Focused specifically on testimonials/endorsements provisions and third-party ratings — the two areas most relevant to the M&A endorsement sweep. Signals continued enforcement in these areas despite broader deregulatory posture.
Key Observations
Violation Categories Are Evolving
The first eight months of enforcement (Aug–May 2023-24) were almost entirely hypothetical performance. By September 2024, the sweep shifted to unsubstantiated statements, testimonials, endorsements, and third-party ratings. The December 2025 Risk Alert focused exclusively on testimonials/endorsements and third-party ratings — the categories now under the M&A endorsement sweep. The SEC has been working through the rule's provisions systematically.
Penalties Are Small — But the Pattern Is the Warning
Marketing Rule penalties ($50K–$325K per firm) are tiny compared to off-channel fines ($125M–$390M per wave). The financial deterrent is weak. The real consequence is examination-triggered policy overhaul and reputational risk. The risk alert + enforcement action pattern is the SEC's established method of moving through new rules systematically — each risk alert telegraphs the next enforcement wave.
Atkins Continued, Not Stopped, Enforcement
Unlike off-channel communications, Marketing Rule enforcement has continued under Atkins. The September 2025 Meridian action was the first Atkins-era enforcement, and the December 2025 Risk Alert signals more to come. The Meridian case was premised on substantiated-claim requirements — arguably a more "investor harm" adjacent theory than technical policy-and-procedure failures, which fits Atkins' stated focus on genuine investor harm.
AI Washing Crosses Both Administrations
The two AI washing cases (March 2024, Gensler) were under the prior administration, but the 2025 and 2026 exam priorities both flag AI representations as an examination focus. The legal theory — unsubstantiated material statements under Rule 206(4)-1(a)(2) — is precisely the same theory used in Meridian. AI washing cases will continue regardless of administration.
The M&A Endorsement Sweep Is the Next Wave
Exam staff is running an active sweep on endorsement activity in adviser M&A transactions. Acquiring firms that use testimonials or client reviews from the acquired firm's clients without proper disclosures are the target. Results have not been announced as of June 2026. The December 2025 Risk Alert's focus on testimonials and endorsements is almost certainly coordinated with this sweep.
The Risk Alert Pattern Is Predictive
Every major Marketing Rule enforcement wave has been preceded by a risk alert 2–8 months earlier describing the deficiencies that became the enforcement targets. Risk Alert #1 (Sep 2022) → first enforcement Aug 2023. Risk Alert #3 (Apr 2024) → testimonial/endorsement wave Sep 2024. Risk Alert #4 (Dec 2025) → M&A endorsement sweep currently underway. Monitoring risk alerts is the leading indicator for Marketing Rule enforcement.
What This Means for Compliance Programs
Four years after the compliance date, the Marketing Rule sweep has worked through hypothetical performance, unsubstantiated statements, testimonials and endorsements, third-party ratings, and AI representations. The next active front is M&A endorsements. The areas that have not yet been heavily enforced — net vs. gross performance presentation for private funds, website claims about strategy or personnel, benchmark presentation — remain examination targets based on the 2024 Risk Alert's deficiency list.
The Meridian case is the most instructive for substantive compliance programs: the violation was a website claim ("refuses all conflicts of interest") that directly contradicted the firm's own Form ADV. The simplest and most common Marketing Rule risk isn't a sophisticated performance presentation error — it's a boilerplate website claim that nobody has compared against the ADV since it was written. Every adviser should be running that comparison regularly.
Methodology and Sources. All enforcement data sourced from SEC.gov press releases, administrative proceedings, and litigation releases. This dataset covers enforcement actions under the amended Marketing Rule (Rule 206(4)-1) as amended December 2020, compliance date November 4, 2022. Pre-amendment enforcement under the old advertising rule is not included. Penalty figures reflect publicly disclosed amounts; several actions list penalties as "to be determined" at time of publication. Firm counts reflect entities charged, not individuals. Violation categories are assigned by this dataset based on the primary violation alleged in the SEC order — actions involving multiple violations are categorized by their primary charge. This is a factual data compilation. No legal conclusions should be drawn from this data without consulting qualified counsel.