Episode Details

When you're choosing a restaurant or a new gadget, online reviews are a given. But for decades, if you tried to research a financial advisor, you'd find almost no public client feedback—by design. That's changed dramatically in the last few years, and it's reshaping how investors evaluate retirement planning experts.

Historically, investment advisers in the U.S. were almost entirely prohibited from using client testimonials or endorsements in their advertising. This "Testimonial Rule" meant you'd rarely see client quotes, star ratings, or endorsements on an advisor's website or marketing materials.

That changed with the SEC's new Investment Adviser Marketing Rule, finalized in December 2020 and fully effective as of November 2022. The new rule allows registered investment advisers to use client testimonials and endorsements—provided they follow strict disclosure, oversight, and compliance requirements.

For the first time, you can see honest client feedback about financial advisors, just as you would for any other professional service. The SEC itself recognized that in today's digital world, investors expect to consult reviews before making important decisions.

Because reviews were previously suppressed, their new visibility makes them powerful indicators of trust. Industry research consistently shows that trust and personal connection are the top drivers of client satisfaction in wealth management. Now, public reviews give you a scalable way to assess these qualities.

A 2023 BrightLocal survey found that nearly all consumers use the internet to research local businesses, and most use Google to evaluate them. This behavior is now extending to financial advisors. Industry platforms have explicitly emerged to host advisor reviews, reflecting both consumer demand and advisor adoption.

The new SEC rule hasn't just changed marketing—it's changed how firms operate. Advisors now build strategies around gathering and showcasing reviews, both on their sites and on third-party platforms. Firms must monitor and respond to online feedback, making reputation management a formal business function. Reviews are used as business intelligence, helping firms identify strengths, address weaknesses, and improve client communication. To comply with the SEC rule, firms must ensure reviews are not misleading, that all required disclosures are made, and that a fair and balanced picture is presented. This has led to the creation of new compliance processes within advisory firms.

So, what should you look for in advisor reviews? The most valuable reviews come from clients who describe years of partnership, not just a single transaction. Reputable firms clearly state that their testimonials are voluntarily provided, not compensated, and that each client's experience is unique. This transparency is now required by law. Look for reviews that detail how the advisor helped with tax planning, managed market volatility, or explained complex options. These specifics show real expertise and a client-centered approach. Top advisors are praised for proactive communication and a focus on client education—qualities that are now more visible thanks to public reviews.

There are also common mistakes to avoid. A high number of reviews doesn't guarantee high-quality service. Focus on the substance. The SEC requires clear disclosures about the nature of testimonials. If you don't see these, be cautious. The best advisors are often described as trusted partners or like family. Don't underestimate the value of a personal connection.

Anthony Pellegrino and Goldstone Financial Group, as a registered investment adviser, are directly affected by the SEC's new rule. They now feature client testimonials as part of their commitment to fiduciary best practices, but with all required disclosures and compliance checks in place. Pellegrino's team uses this feedback not just for marketing, but as a tool for continuous impr