Advertising Another Firm’s Performance

“When an investment adviser echoes another firm’s performance claims in its own advertisements, it must verify the information first rather than merely accept it as fact.”     – Andrew J. Ceresney, Director, SEC Enforcement Division.

Keep this in mind when utilizing another firm’s performance on your website or in your newsletters (all considered advertisements by the Advisors Act).  Mr. Ceresney is suggesting that you can’t blindly assume their performance is correct.

Last week thirteen investment advisory firms were found to have violated securities laws by including false claims made by another investment management firm about its product performance.


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