If an advisor’s material doesn’t reflect accurate past performance, it is a potential violation of:

When an advisor presents material that does not accurately reflect past performance, it constitutes a breach of Standard III(D), which specifically addresses Performance Presentation. This standard emphasizes the necessity for investment professionals to ensure that performance data is not misleading. Advisors are required to provide fair and accurate representations of their past performance to maintain integrity and uphold the trust of clients and the public.

This standard aims to promote transparency and comparability in performance reporting. Accurate performance presentation not only involves reporting returns but also addressing how those returns were achieved, under what conditions, and considering net of fees, among other factors. Misrepresenting past performance can lead to clients making uninformed decisions based on erroneous data, which undermines the ethical standards expected in the profession.

While other standards address different ethical concerns, such as misrepresentation or loyalty to clients, they do not specifically pertain to the accurate representation of performance data as laid out in Standard III(D). Therefore, for an instance of inaccurate past performance reporting, Standard III(D) is precisely the guideline that has been violated.