On March 19, 2025, the SEC Division of Investment Management issued two new FAQs relating to Rule 206(4)‑1 under the Investment Advisers Act of 1940. The FAQs set forth the conditions under which an adviser may show yield and certain other portfolio characteristics or gross performance of an extract from a portfolio in an advertisement without also including a net performance figure for such characteristic or extract. The obligation to present net performance in those circumstances has vexed certain advisers since the Rule’s adoption. The new FAQs provide “welcome guidance that will make the lives of all of our advertising investment advisers easier and, frankly, make for some better advertisements,” said K&L Gates partner Lance C. Dial, who parsed the FAQs in a presentation with partners Pamela A. Grossetti and Jennifer L. Klass. This article distills their insights and the key provisions of the FAQs. See “Navigating Substantiation of Facts, Testimonials and Performance Claims Under the Marketing Rule” (Nov. 21, 2024).