The SEC continues to scrutinize advisers’ compliance with rules regarding advertising. See “Risk Alert Highlights Six Most Frequent Advertising Rule Compliance Issues” (Oct. 19, 2017). The Commission recently settled with an investment adviser that allegedly failed to adequately disclose its use of backtested data in certain marketing materials. This article details the alleged misconduct and the terms of the settlement order. See our three-part advertising compliance series: “Ten Best Practices for a Fund Manager to Streamline Its Compliance Review” (Sep. 14, 2017); “Five High-Risk Areas for a Fund Manager to Focus on When Reviewing Marketing Materials” (Sep. 21, 2017); and “Six Methods for a Fund Manager to Test Its Advertising Review Procedures” (Sep. 28, 2017).