how can you separate misrepresentation(1C) of perfomance from performance presentation(3D)?
Misrepresentation applies to more than just clients. Performance presentation is just to clients. So you could have a performance presentation violation to a client that would probably also be a violation of misrepresentation. But you could also have a misrepresentation violation to a non-client that wouldn’t violate the performance presentation. As with all ethics…I think.
yes that was my point I mean if you have a client to whom you present inflated performance- that could be both, so it’s kinda confusing
Do they both have to be knowingly (as in the case of misrep)?
I think so.
bump this: Say i have a prospective client and i say “you’re guaranteed to get 30% next year based on the last 10 years worth of returns!”…this is a violation of misrepresentation and not performance presentation right?
I believe Misrepresentation has more to do with communicating with false/misleading data (e.g “I guarantee X return”), whereas Performance Presentation has more to do with making sure you are presenting all the required data so that the client is well informed (e.g “Let’s not include a benchmark in the presentation”)
that makes sense, thanks
So Is it safe to say that 3D(Performance presentation) might be a subset of 1C(Misrepresentation)?