Why Client Reviews Work Differently For Investment Advisors & Wealth Managers

• Marketing & Client Acquisition: Advisors now build strategies around gathering and showcasing reviews, both on their own sites and on third-party platforms.
• Reputation Management: Firms may now monitor and respond to online feedback, making reputation management a formal business function.
• Service Improvement: Reviews are used as business intelligence, helping firms identify strengths, address weaknesses, and improve client communication.
• Compliance Workflows: To comply with the SEC rule, firms must ensure reviews are not misleading, that all required disclosures are made (such as whether a reviewer was compensated), and that a fair and balanced picture is presented. This has led to the creation of new compliance processes within advisory firms.

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.

The Regulatory Shift: Testimonials Represent the Voice of the Customer

Historically, investment advisors in the U.S. were almost entirely prohibited from using client testimonials or endorsements in their advertising. This "Testimonial Rule" (in place since 1961) 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 Advisor Marketing Rule (Rule 206(4)-1), finalized in December 2020 and fully effective as of November 2022. The new rule allows registered investment advisors to use client testimonials and endorsements—provided they follow strict disclosure, oversight, and compliance requirements.

What does this mean for you?

For the first time, you can see 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.

Why Reviews Now Matter More Than Ever

1. Reviews as Signals of Trust and Advocacy

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 98% of consumers use the internet to research local businesses, and 87% used Google to evaluate them in 2022. This behavior is now extending to financial advisors.
• Industry platforms like Wealthtender and WiserAdvisor have emerged to host advisor reviews, reflecting both consumer demand and advisor adoption.

2. Reviews Are Now Part of Business Planning

The new SEC rule has changed marketing and affected how firms operate.

• Marketing & Client Acquisition: Advisors now build strategies around gathering and showcasing reviews, both on their own sites and on third-party platforms.
• Reputation Management: Firms may now monitor and respond to online feedback, making reputation management a formal business function.
• Service Improvement: Reviews are used as business intelligence, helping firms identify strengths, address weaknesses, and improve client communication.
• Compliance Workflows: To comply with the SEC rule, firms must ensure reviews are not misleading, that all required disclosures are made (such as whether a reviewer was compensated), and that a fair and balanced picture is presented. This has led to the creation of new compliance processes within advisory firms.

What to Look for in Advisor Reviews

1. Evidence of Long-Term Relationships

The most valuable reviews come from clients who describe years of partnership, not just a single transaction.

2. Transparency and Disclosures

SEC Registered Investment Advisors like Goldstone Financial Group 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.

3. Specifics Over Superlatives

Check reviews that highlight the advisor's expertise in tax planning, risk management, and income management. These insights may indicate a client-focused approach.

4. Responsiveness and Education

We believe that top advisors are praised for proactive communication and a focus on client education—qualities that are now more visible thanks to public reviews.

Mistakes to Avoid

• Confusing Popularity with Quality: A high number of reviews doesn't guarantee high-quality service. Focus on the substance.
• Ignoring Disclosures: The SEC requires clear disclosures about the nature of testimonials. If you don't see these, be cautious.
• Overlooking the Human Element: In our view, the best advisors are often described as "trusted partners" or "like family." Don't underestimate the value of a personal connection.

How Leading Advisors Like Anthony Pellegrino Use Reviews

Anthony Pellegrino and Goldstone Financial Group, as a registered investment advisor, 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 improvement and accountability.

If you're considering a new advisor, start by reading their client testimonials with a critical eye. For an example of how a fiduciary firm presents client feedback in line with SEC rules, see the testimonials for Goldstone Financial Group.

Disclosure:

Goldstone Financial Group (“GFG”) is a registered investment advisor, registered with the Securities and Exchange Commission. Registration does not imply a certain level of skill or training. The information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice.

All testimonials are provided by current clients of GFG and no client has been compensated for their testimonial. All clients' experiences may vary.

The Five Star Award was issued on 10/01/2025 by Five Star Professional (FSP) for the time period 01/01/2025 through 08/01/2025. Fee paid for use of marketing materials. Self-completed questionnaire was used for rating. This rating is not related to the quality of the investment advice and based solely on the disclosed criteria. 6399 Chicago-area wealth managers were considered for the award; 362 (6% of candidates) were named 2025 Five Star Wealth Managers.

Wealth managers do not pay a fee to be considered or placed on the final list of Five Star Wealth Managers. For a detailed award methodology, please visit: https://www.fivestarprofessional.com/awardwinners/CHIWM