Robert Swatz is a financial advisor who is trying to get a new client and to do so, he says, “I only have a 4-year track record, but I’ve averaged a 34% return on my clients’ accounts”. This sentence is true, but Swatz does not mention to the prospectthat he has few clients, and that this high average is mainly because one of his clients took a strong position in derivatives against the recommendation of Swatz and the operation finally went very well, removing that operation the average profitability of the accounts of his clients would be 5%. Has Swatz violated the Standards?

• a) Yes, since the statement misrepresent the track record.

• b) No, since the statement is true.

• c) No, since the adviser is not promising that the client will earn a 34% return in the future.