When information about past performance is provided for an advertised product, which statements must be true?

• A. A (i) and (ii) only.
• B. B (ii) only.
• C. C (ii) and (iii) only.
• D. D (i), (ii) and (iii).

Answer: (A)

When information about past performance is shown, it must be presented in a way that cannot mislead about what might happen in the future. The important requirements are that past results are not presented as a guarantee of future performance and that the data is shown clearly and fairly for the same product, over a clearly defined time period, and with any fees or charges either included or clearly disclosed.

The correct option reflects those essential truths: the two statements that must be true align with needing a clear, honest context for past performance and the caveat that it does not predict future results. The third statement does not have to be true and could be misleading or not required by the rules.

In practice, ensure any past performance ad states that results aren’t indicative of future returns and presents the period and context transparently (including whether fees are included).