CIPR 4.2.10 Advertisements with future performance forecasts

(1) If an authorised firm makes or approves an advertisement that includes or refers to a forecast of the future performance of a regulated activity or specified product, it must ensure that:
(a) the forecast is not based on, and does not refer to, simulated past performance;
(b) the forecast is based on reasonable assumptions supported by objective data; and
(c) the forecast is based on net performance (that is, the effect of commissions, fees or other charges (applied by any party) is fully taken into account in the forecast) and is not based on gross performance.


In the case of a packaged investment product, the other charges would include charges applied at the level of the underlying funds and any sub-funds of those funds.
(2) The firm must ensure that any document that includes or refers to illustrations or information on future performance forecasts must also contain the following warning:
Warning: These figures are estimates only. They are not a reliable guide to the future performance of this investment.
The warning must appear near the information on future performance, and may not be provided by way of a footnote.
Derived from QFCRA RM/2019-2 (as from 1st January 2020).