SEC Takes Aim at Performance That’s Just Too Good to Be True
- Advisers to maintain written communication related to returns
- Firms will also have to disclose more separate account data
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If you send investors documents showing you’ve delivered a 20 percent return, now you really have to prove it.
Wall Street’s main regulator is going to require investment advisers to create and maintain any documents that are distributed demonstrating performance calculations or returns, according to a statement Thursday. That will make it easier for the Securities and Exchange Commission to identify fraudulent advertising and pursue misleading claims.