The Texas State Securities Board has approved a rule change allowing state-registered financial advisers to post client testimonials and five-star reviews online. InvestmentNews reports that the decision overturns a longstanding prohibition on testimonials, bringing Texas in line with the SEC's 2020 Marketing Rule, which permits federally registered advisers to use client reviews in their marketing.

Consumer behavior studies highlight the significance of online testimonials in financial decision-making. The 2023 BrightLocal Consumer Review Survey found that 81 percent of consumers rely on online reviews. Additionally, the 2024 Ficomm financial advisor marketing report revealed that 45 percent of consumers select financial advisors based on digital marketing, with that number rising to 57 percent among individuals under 44.

InvestmentNews reports that while nearly half of U.S. states now allow state-registered advisers to use online reviews, advisers in about two dozen states, including California, still face restrictions. California alone has 2,744 state-registered advisers unable to use client testimonials due to outdated regulations.

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