Rule 206(4)-1(a)(6)

General prohibition: performance results that are not fair and balanced

performancefair-and-balancedtime-periodsgeneral-prohibition

Verbatim from the rule

An advertisement may not include or exclude performance results, or present performance time periods, in a manner that is not fair and balanced.

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

What violations look like

Website

Q3 2025: +14.8%

Why it's flagged: A single quarter shown without max-drawdown disclosure, without the broader-period context, without volatility metrics. Selective performance presentation is the textbook (a)(6) violation — distinct from (d)(1) gross/net.

Compliant rewrite

Pair the quarterly figure with year-to-date, 1-year, and since-inception net returns, plus the maximum drawdown over the same period.

Newsletter

Returned 18.2% last year — outperforming our 12% benchmark.

Why it's flagged: Without naming the benchmark, the reader can’t evaluate whether the comparison is apt. Omitting the benchmark identity isn’t fair-and-balanced even when the numbers are accurate.

Compliant rewrite

Returned 18.2% net of fees in 2025 vs the Bloomberg US Aggregate Bond Index’s 12.0% total return for the same period.

Run Rule 206(4)-1(a)(6) on your own copy.

Paste any draft — LinkedIn post, newsletter, website copy — and Safe to Publish flags the Rule 206(4)-1(a)(6) 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.