SEC Staff Gives Advisers a Break on Presenting Net Performance for Case Studies and Portfolio Characteristics
Background — The Difficulty for Advisers Since the U.S. Securities and Exchange Commission (“SEC”) adopted Rule 206(4)-1 under the Investment Advisers Act of 1940 (the “Marketing Rule”), investment advisers have struggled with certain requirements relating to presenting “net” performance figures, especially when such figures are difficult to determine. One scenario relates to the presentation of…