Standard I cases: misrepresenting services, products and results

In short

• Misrepresentation is an untrue statement, an omission of a fact, or any statement that is otherwise false or misleading. 'Knowingly' includes 'should have known'.
• Honest errors are not violations, but once found you must stop distribution and correct the record with those who received it. Leaving a known error in place is a violation.
• No guarantees of return or capital on risky investments. A guarantee built into a product, or covered by an institution or deposit insurance, may be described accurately and within its limits.
• Performance: use a comparable benchmark on a comparable basis. No benchmark is acceptable when none fits, but an unusual reference index needs reasons. Never cherry-pick a composite or shop for valuations.
• Third parties: ratings, marketing material and managers you rely on become your responsibility, and use of external managers must be disclosed, not passed off as your own.
• Whole picture: one standout fund does not describe a firm.