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Showing performance under the Marketing Rule

If a number about returns appears in an advertisement, paragraph (d) of Rule 206(4)-1 sets the conditions.

The conditions

• Gross needs net. Show net performance with at least equal prominence, in a format that makes comparison easy, over the same period and with the same method.
• 1, 5 and 10 years. For most portfolios and composites (private funds are excluded), show one-, five- and ten-year results with equal prominence, ending no earlier than the most recent calendar year-end. A portfolio that is younger than a period uses its life instead.
• No SEC approval claims. Do not say or imply the SEC approved or reviewed your performance calculation or presentation.
• Related performance must include all related portfolios, unless leaving some out does not make the results materially higher and does not change the required periods.
• Extracted performance (a slice of a portfolio) needs the total portfolio's results, or an offer to give them promptly.
• Hypothetical performance needs policies that make it relevant to the intended audience, the criteria and assumptions behind it, and the risks and limits of relying on it.
• Predecessor performance needs the same people, similar accounts, all similar accounts included, and clear disclosure that it came from another firm.

Quick test

For every return figure on your site or slides, ask: is it net? does it show 1, 5 and 10 years? is the end date recent? is there a risk note next to it?

Scan your website for performance claims

Source: 17 CFR 275.206(4)-1(d), read 2026-10-16. Not legal advice.