Back Tested Performance

Back Tested PerformanceInvestment advisor advertising is subject to the anti-fraud provisions of Section 206 of the Advisors Act. The SEC is especially interested in how an advisor presents its performance, and using back-tested or hypothetical performance adds complexity and leads to additional scrutiny. Oyster will review your firm’s methods for creating and disclosing performance to ensure that performance advertising is in compliance with applicable rules and guidance. Oyster’s approach is to:

  • Review your firm’s portfolios and structure
  • Understand your business model and methodology
  • Focused on the message to your clients and prospects
  • Test and validate your calculations
  • Create disclaimers and disclosures to achieve compliance
  • Provide simplicity and clarity in the final product

The Oyster Difference

Oyster does not have a cookie-cutter, one-size-fits-all approach to reviewing Performance and Advertising. Our experts have years of industry experience and can quickly assess through thoughtful questions skillful review the areas that need attention. Oyster will identify potential problem areas and provide your firm with practical recommendations to achieve best practices.