What classification is given to advertisements by Investment Advisor Representatives (IARs) on social media?

Advertisements by Investment Advisor Representatives (IARs) on social media fall under the classification of advertisement. This is because any communication made to the public or potential clients with the intent to promote a firm’s investment advisory services or products is categorized as an advertisement.

In the realm of securities regulations, advertisements encompass a broad range of promotional tools including those used on social media platforms, which are inherently designed to attract and inform prospective clients about advisory services. The focus is on the purpose of the message rather than the medium, so social media content that is intended to market services qualifies as an advertisement.

Promotional material is a more general term that can refer not only to advertisements but also to other marketing collateral, such as brochures or flyers. Public relations typically deals with managing communication between an organization and the public, often creating a more formal and broader strategy. Client communication generally refers to discussions or documents directed specifically at existing clients, rather than outreach efforts aimed at potential new clients through public channels.

Thus, the classification of IARs' social media posts as advertisements accurately reflects their role in promoting investment services to a wide audience.