Performance: gross performance must be presented with net performance
An advertisement may not include any presentation of gross performance, unless the advertisement also presents net performance: (i) with at least equal prominence to, and in a format designed to facilitate comparison with, the gross performance; and (ii) calculated over the same time period, and using the same type of return and methodology, as the gross performance.
What violations look like
Our Meridian Growth Strategy returned 28% last year.
Why it's flagged: Performance shown without net-of-fees at equal prominence. Net is what the client actually receives; the rule requires that figure to appear with the same visual weight as the gross figure.
Returned 28.0% gross / 26.3% net of fees for the 12 months ending December 31, 2025.
Returned 12.4% YTD, comfortably ahead of the S&P 500's 8.1%.
Why it's flagged: Strategy return shown gross-only against an index that is total-return-pre-fees by convention. Comparing the two side-by-side without net-of-fees disclosure is a "fair and balanced" failure.
Returned 12.4% gross / 10.8% net of fees vs. S&P 500 total-return 8.1% (Jan 1 – Sep 30, 2025).
Run Rule 206(4)-1(d)(1) on your own copy.
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