⚠️ Disclaimer: The information below is for general guidance only and does not constitute legal or regulatory advice. Always consult your Compliance Department or legal counsel for specific instructions.
Why Compliance Matters
In the financial and insurance industries, maintaining compliance with marketing and communication regulations is essential. These rules protect advisors, their firms, and clients by ensuring all messaging is transparent, accurate, and follows legal standards. Using Waterlily’s platform to communicate with clients and prospects can make your outreach easier—but it’s still your responsibility to meet all compliance requirements.
Understanding Waterlily Emails as Marketing or Advertising
Waterlily emails can fall under "marketing" or "advertising" depending on the content and audience. For example:
If you send an email encouraging multiple clients to review their LTC estimates, it might be considered marketing.
A single email reminder to an individual client about their intake form might be classified as correspondence rather than marketing—but this can vary by firm.
💡 Tip: Always check your firm’s definitions and policies to confirm what counts as marketing or advertising.
Compliance Approval for Email Templates
Waterlily provides generic, pre-written email templates to help you communicate efficiently. However:
These templates are not pre-approved for compliance by Waterlily.
Each financial institution, broker‐dealer, or carrier has unique review and approval processes for marketing materials.
Best Practice: Before sending, submit your email to your Compliance Department if required. Document their approval for future audits.
Pop-Up Alerts for Bulk or Automated Emails
Waterlily includes a reminder pop-up before sending bulk or automated emails to ensure you’ve obtained any required compliance approvals. This safeguard:
Protects you from sending non-compliant communications.
Ensures you’ve followed your firm’s rules and regulatory guidelines.
📄 Note: Always review your firm’s procedures for marketing approvals before proceeding.
Adding Disclaimers to Emails
Many firms require disclaimers in client-facing communications, especially those related to financial products or services. These disclaimers ensure transparency and set appropriate expectations.
👉 Examples of Common Disclaimers:
“These LTC estimates are for informational purposes only and are not guaranteed.”
“Not intended as financial or tax advice. Please consult your licensed financial professional.”
💡 Tip: Customize your Waterlily email templates to include your firm’s required disclaimers. If your firm automatically appends disclaimers, double-check that they’re being applied.
Editing Email Templates
Even minor changes to Waterlily’s default templates can trigger a need for compliance review. For instance:
Changing a single sentence may alter the tone or meaning of the email.
Adding personalized messages could introduce new content requiring approval.
Best Practice: When in doubt, always submit your edits for compliance review before sending.
Record-keeping Requirements
Advisors are often required to archive client communications for regulatory or firm policy reasons. Waterlily does not store an immutable copy of sent emails, so you must:
BCC your firm’s compliance mailbox.
Take a PDF screenshot of the email.
Use your firm’s approved archiving solution.
❗Reminder: Retain copies of all communications for the required retention period (e.g., 3–7 years).
Batch Messaging and Single Client Emails
Even if you’re sending similar messages to clients one at a time, your firm might classify this as “batch marketing.” Always confirm with your Compliance Department whether:
Single-client emails are routine correspondence or marketing.
Multiple, similar emails sent individually qualify as “advertising.”
Regulations Governing Client Communications
Key regulations to be aware of include:
FINRA Rule 2210: Covers broker‐dealer communications with the public, including advertising and correspondence.
SEC Marketing Rule (Advisers Act Rule 206(4)-1): Governs investment adviser advertisements for RIAs.
State Insurance Regulations: Vary by state and often include specific requirements for advertising.
Carrier-Specific Advertising Guidelines: Life and LTC carriers may have their own marketing rules.
💡 Action Tip: Review the specific rules that apply to your firm, licenses, and appointments.
How to Get Help
If you’re unsure about compliance, here’s where to turn:
Your Compliance Department: They can provide firm-specific guidance.
State Insurance Department: For questions about insurance advertising regulations.
Legal Counsel: For advice on complex regulatory obligations.
Waterlily Support: Contact support@joinwaterlily.com for technical assistance or questions about adding disclaimers.
Key Takeaways
Compliance is Your Responsibility: Advisors must ensure that all communications meet legal and firm-specific standards.
Always Use Disclaimers: Add appropriate disclosures to emails to protect yourself and inform clients.
Document Approvals: Keep records of compliance approvals for marketing emails.
Follow Firm Policies: Confirm what constitutes marketing, advertising, and correspondence under your firm’s guidelines.
❗Reminder: Waterlily is not a broker‐dealer, investment adviser, or insurance agency and does not guarantee compliance. Always consult with your Compliance Department for specific guidance.