AIMA Webinar Replay: The SEC Marketing Rule 360: Hypothetical Performance Under the SEC’s New Marketing Rule: Avoiding the Misleading Characterization of Manufactured Returns
Published: 22 June 2022
Recorded on June 21 2022
Hypothetical performance has a long and difficult history in the regulation of adviser advertising. For many years, it was regarded by the SEC staff as per se fraudulent because it did not actually occur. Although hypothetical performance has since been acknowledged by the SEC as being of potential value to investors, investment advisers tread extremely carefully, knowing full well that hypothetical performance will be closely reviewed with a history of bias and the benefit of hindsight.
There are many circumstances where hypothetical performance is important to a fund manager’s marketing - if not critical, as in the case of a new launch with no performance history to offer. The new Marketing Rule improves the framework for hypothetical performance use, identifying certain steps to address what the SEC described in the Adopting Release as “its potentially misleading nature”. Importantly, it also provides exclusions from these hypothetical performance requirements.
On Tuesday, June 21, join us as we review the Marketing Rule’s approach to using hypothetical performance in advertisements, highlighting what has changed and what to watch for. Audience questions are welcome and encouraged.
We hope you will join us for this timely and informative session.
• Shivani Choudhary, Managing Director, ACA Group
• Julia Reyes, Partner, ACA Group
• Suzan Rose, Senior Advisor, Government & Regulatory Affairs, AIMA