Yesterday's Trades, Today's Marketing: Using Past Specific Recommendations

March 2, 2015

The following article was written by ACA's Lawrence Florio, Brian Roberts, and Joel Stocksdale appeared in the March 2015 IAA Newsletter.

Given the large number of investment advisers competing today for clients and investment dollars, firms may be finding it progressively more difficult and increasingly important to differentiate themselves from the pack. In this environment, many advisers constantly seek more effective ways to demonstrate their capabilities to potential clients and investors. One especially attractive tool for that purpose is their past performance figures. However, given the restrictions placed on adviser advertising by the Investment Advisers Act of 1940 (“Advisers Act”), various no-action letters, and other regulatory guidance, advisers may be unclear as to how they can leverage past performance without running afoul of applicable rules.

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