[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR4.41]

[Page 201-202]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 4--COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS--Table of Contents
 
                         Subpart D--Advertising
 
Sec. 4.41  Advertising by commodity pool operators, commodity trading advisors, and the principals thereof.

    (a) No commodity pool operator, commodity trading advisor, or any 
principal thereof, may advertise in a manner which:
    (1) Employs any device, scheme or artifice to defraud any 
participant or client or prospective participant or client; or
    (2) Involves any transaction, practice or course of business which 
operates as a fraud or deceit upon any participant or client or any 
prospective participant or client.
    (b)(1) No person may present the performance of any simulated or 
hypothetical commodity interest account, transaction in a commodity 
interest or

[[Page 202]]

series of transactions in a commodity interest of a commodity pool 
operator, commodity trading advisor, or any principal thereof, unless 
such performance is accompanied by one of the following:
    (i) The following statement: ``Hypothetical or simulated performance 
results have certain inherent limitations. Unlike an actual performance 
record, simulated results do not represent actual trading. Also, since 
the trades have not actually been executed, the results may have under- 
or over-compensated for the impact, if any, of certain market factors, 
such as lack of liquidity. Simulated trading programs in general are 
also subject to the fact that they are designed with the benefit of 
hindsight. No representation is being made that any account will or is 
likely to achieve profits or losses similar to those shown;'' or
    (ii) A statement prescribed pursuant to rules promulgated by a 
registered futures association pursuant to section 17(j) of the Act.
    (2) If the presentation of such simulated or hypothetical 
performance is other than oral, the prescribed statement must be 
prominently disclosed.
    (c) The provisions of this section shall apply:
    (1) To any publication, distribution or broadcast of any report, 
letter, circular, memorandum, publication, writing, advertisement or 
other literature or advice, including the texts of standardized oral 
presentations and of radio, television, seminar or similar mass media 
presentations, and
    (2) Regardless of whether the commodity pool operator or commodity 
trading advisor is exempt from registration under the Act.

(Approved by the Office of Management and Budget under control number 
3038-0005)

[46 FR 26013, May 8, 1981, as amended at 46 FR 63035, Dec. 30, 1981; 60 
FR 38192, July 25, 1995]

                            PART 5 [RESERVED]