NASD Rules on Using Testimonials- Let's not rule out using testimonials until we get the facts...

From NASD Website:

I did some more digging and found that some securities licensed folks actually can use testimonials, to a limited degree if they follow rules like these:

From NASD, NASD Rules 2210(d)(1)(D) and (d)(2)(A) :

(2) Standards Applicable to Advertisements and Sales Literature

(A) Advertisements or sales literature providing any testimonial concerning the investment advice or investment performance of a member or its products must prominently disclose the following:

(i) The fact that the testimonial may not be representative of the experience of other clients.

(ii) The fact that the testimonial is no guarantee of future performance or success.

(iii) If more than a nominal sum is paid, the fact that it is a paid testimonial.

Also:
(E) If any testimonial in a communication with the public concerns a technical aspect of investing, the person making the testimonial must have the knowledge and experience to form a valid opinion.

I excerpted these from FINRA website:
http://finra.complinet.com/en/display/display.html?rbid=2403&element_id=3617

Does anyone want to add to this?

Find more useful tips in the National Ethics Bureau's Red Flag Reminder section at http://www.ethicscheck.com