Rule 206(4)-1(d)(1)

Performance: gross performance must be presented with net performance

performancegross-vs-netequal-prominence

Verbatim from the rule

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.

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

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.

Compliant rewrite

Returned 28.0% gross / 26.3% net of fees for the 12 months ending December 31, 2025.

Newsletter

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.

Compliant rewrite

Returned 12.4% gross / 10.8% net of fees vs. S&P 500 total-return 8.1% (Jan 1 – Sep 30, 2025).

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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.