Rule 206(4)-1(a)(2)

General prohibition: lack of reasonable basis for material statements of fact

substantiationmaterial-factgeneral-prohibition

Verbatim from the rule

An advertisement may not include a material statement of fact that the adviser does not have a reasonable basis for believing it will be able to substantiate upon demand by the Commission.

Source: 17 CFR § 275.206(4)-1 on eCFR.

What violations look like

As the #1 wealth manager in the Pacific Northwest, we help families plan for retirement.

Why it's flagged: "#1" is a superlative without a disclosed third-party source, period, or methodology — there is no reasonable basis a reader can verify.

Compliant rewrite

A boutique wealth manager serving families in the Pacific Northwest.

Website

Trusted by 500+ families since 2002.

Why it's flagged: A numeric claim still requires substantiation. The reader needs to know the count is real and current — your books and records should support it as of a stated date.

Compliant rewrite

Trusted by 500+ client households as of December 31, 2025.

Website

Our personalized investment plans have helped clients achieve their dreams of early retirement and lasting generational wealth.

Why it's flagged: Promises specific client outcomes without substantiation reads as an implied performance guarantee.

Compliant rewrite

Our planning process addresses retirement, education funding, and estate considerations.

Run Rule 206(4)-1(a)(2) on your own copy.

Paste any draft — LinkedIn post, newsletter, website copy — and Safe to Publish flags the Rule 206(4)-1(a)(2) issues with citations to the rule and a suggested rewrite.

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This page is for educational purposes and is not legal advice. Safe to Publish is not a law firm. Compliance decisions remain the responsibility of the registered investment adviser. See Terms.