CIPR 4.2.11 Advertisements for packaged investment products

(1) In relation to the past performance of a packaged investment product, an authorised firm must ensure that, where relevant, the performance information is given on:
(a) an offer-to-bid basis (which must be stated), if there is an actual return or comparison of performance with other investments;
(b) an offer-to-offer, bid-to-bid or offer-to-bid basis (which must be stated), if there is a comparison of performance with an index or with movements in the price of units; or
(c) a single-pricing basis (which must be stated) with allowance for fees and charges.
(2) If the pricing policy of the product changes during the period for which performance information is presented, the firm must ensure that the prices used include the adjustments necessary to remove any distortions resulting from the change in the pricing policy.
(3) If an authorised firm gives information in a durable medium about the simulated performance of a packaged investment product, the information:
(a) must be based on a simulated performance that is relevant to the performance of the product;
(b) must not be selected so as to exaggerate the success or disguise the lack of success of the product;
(c) must state the source of the information; and
(d) must indicate whether, and to what extent, transaction costs, interest and taxation have been taken into account.
(4) The firm must ensure that any advertisement that contains illustrations or information on simulated performance also contains 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 simulated performance, and may not be provided by way of a footnote.
(5) The firm must make and retain a detailed record of how the simulated performance information was calculated.
Derived from QFCRA RM/2019-2 (as from 1st January 2020).