When can performance data be included in financial promotions?

Performance data can be included in financial promotions when it is based on simulated past performance that accurately reflects actual similar investments. This is important because it ensures that potential investors are provided with a realistic view of how similar investments have performed, which helps them make informed decisions.

Simulated performance data serves as a projection of what might happen based on historical data from similar investments, but it must be made clear that this is not an actual result from the promoted product. This practice is designed to protect investors by ensuring that the information presented is relevant and reflective of real market conditions, allowing them to evaluate the potential risks and rewards adequately.

Understanding that future performance cannot be promised as guaranteed is also critical in this context, as it aligns with regulatory standards that aim to prevent misleading information in financial promotions. This clarity helps maintain trust and transparency in the financial services sector.