I am a Virginia resident and co-founder of a Virginia-based, state-registered investment advisory firm serving middle-class professionals in their 30s and 40s. Virginia-based registered investment advisers are currently at a competitive disadvantage due to outdated advertising and testimonial restrictions that no longer reflect federal standards or modern consumer behavior. In 2022, the U.S. Securities and Exchange Commission modernized its advertising and marketing rules for investment advisers. These updated rules allow SEC-registered advisers, under clear guardrails, to solicit and display client reviews, including online reviews such as Google Reviews, and to use client testimonials on their websites. These changes were designed to increase transparency, improve consumer access to information, and reflect how individuals evaluate professional services today. However, Virginia’s State Corporation Commission has not yet adopted these modernized rules for state-registered investment advisers. As a result: *Large advisory firms (such as Morgan Stanley and Merrill Lynch), which are SEC-registered due to managing over $100 million in assets, are permitted to solicit Google Reviews and publish client testimonials. *Washington, DC–based advisory firms, which follow the SEC Marketing Rule, are permitted to do the same. *Virginia-based small and mid-sized advisory firms are prohibited from engaging in these common and widely accepted business practices. This discrepancy creates an uneven playing field that disproportionately harms small, independent Virginia firms, many of which serve middle-class and professional households, while benefiting large national firms and neighboring jurisdictions. Nearly half of U.S. states have already adopted these rules for state-registered advisers without evidence of increased consumer harm. HB 479 would simply allow Virginia to align with the federal standard already in effect elsewhere. It would: *Promote fair competition between Virginia firms and their DC-based and SEC-registered peers, *Support small businesses operating in the Commonwealth, *Improve transparency by allowing consumers to see authentic client feedback, *Maintain strong investor protections through established regulatory safeguards. HB 479 would allow Virginia businesses to operate under the same modern rules that apply to competitors across the Potomac and to large national firms. For these reasons, I respectfully urge support for HB 479.

Allowing registered investment advisory firms in Virginia to publicly post client reviews and testimonials would strengthen investor protection by increasing transparency rather than suppressing useful information. The SEC’s updated Marketing Rule already permits testimonials subject to strict anti-fraud safeguards, including disclosure requirements and prohibitions against misleading statements. This framework demonstrates that investor protection and testimonials are not mutually exclusive, and that regulating how reviews are presented is more effective than banning them outright. Aligning Virginia’s rules with this approach would protect investors while ensuring communications occur within a supervised, enforceable regulatory structure. Public client reviews materially improve investor decision-making. Investment advisory relationships are highly personal , and traditional disclosures such as Form ADV, while important, do not convey service quality, communication style, or client experience in a way most retail investors can easily evaluate. Testimonials provide real-world context that helps prospective clients assess fit, set realistic expectations, and compare advisory services more meaningfully. Preventing advisors from sharing this information leaves investors to rely on informal or unregulated sources that may be less accurate or complete. Permitting testimonials would also promote competitive fairness among advisory firms, particularly benefiting smaller and independent RIAs that lack national brand recognition. Large financial institutions already enjoy significant marketing advantages, while smaller firms often depend on reputation and client satisfaction to compete. A blanket prohibition on testimonials disproportionately disadvantages these firms, limiting competition and consumer choice. Allowing testimonials on equal terms creates a more level playing field and encourages higher service standards across the industry.

I support HB 479 because it updates Virginia’s investment adviser advertising rules to reflect the SEC’s disclosure-based marketing regulation that has been in place nationally since 2021. Allowing well-regulated, clearly disclosed client testimonials helps consumers make more informed decisions while preserving strong investor protections. Virginia’s current prohibition creates confusion for consumers and puts Virginia-regulated advisory firms at a competitive disadvantage compared to nationally registered firms, even though most consumers don’t distinguish between the two. Aligning state rules with the national SEC framework levels the playing field, strengthens consumer protection, and supports the competitiveness of Virginia-based small businesses. This is a clear win-win for Virginia consumers and Virginia advisory firms.

My name is Brian Thorp, and I am writing in strong support of HB 479, which would modernize Virginia’s investment adviser advertising rules by permitting the use of client testimonials and endorsements under a disclosure-based framework aligned with the SEC’s Investment Adviser Marketing Rule. HB 479 is a necessary and overdue update that benefits Virginia consumers, promotes fair competition, and aligns state law with the regulatory framework that has governed SEC-registered advisers since May 2021. Since the SEC Marketing Rule took effect, consumers have benefited from greater transparency and access to real client experiences when evaluating financial advisors. Testimonials, when paired with clear and prominent disclosures, help consumers make more informed decisions while preserving strong investor protections. The SEC framework requires disclosures regarding the source of testimonials, whether compensation was provided, and any material conflicts of interest, while prohibiting misleading, promissory, or non-factual statements. Virginia’s continued prohibition on testimonials for state-registered investment advisers creates an uneven and confusing marketplace. Most consumers do not distinguish between state- and federally registered advisers, yet current law allows one group to collect and share client feedback online while prohibiting the other from doing so. This disparity disadvantages Virginia-registered advisers and distorts consumer perception. The practical consequences are real. For example: 1. Consumers may incorrectly assume advisers without client reviews published online are less experienced or less trustworthy 2. National firms with SEC registration gain an unfair marketing advantage over Virginia-based small businesses 3. Independent advisers face pressure to affiliate with larger firms solely to remain competitive 4. Entrepreneurship and consumer choice are reduced within the Commonwealth HB 479 addresses these issues directly by replacing an outdated prohibition with a modern, disclosure-driven approach that mirrors federal standards and the direction taken by the majority of US states. For transparency, I am the founder of Wealthtender, a company that operates a website to help consumers find and hire trusted financial advisors, including an online review platform designed for compliance with the SEC Marketing Rule. Since 2021, advisers operating under compliant testimonial frameworks have collected thousands of client reviews that help consumers better understand the value and impact of professional financial advice. The feedback shared by clients is overwhelmingly thoughtful, specific, and meaningful, precisely the kind of information consumers seek when choosing a trusted professional. HB 479 strengthens consumer protection, supports Virginia small businesses, and brings state law in line with modern regulatory realities. I urge legislators to advance and pass this bill. Respectfully, Brian Thorp Founder and CEO, Wealthtender