Advertising by investment advisers is subject to numerous rules and regulations, and rife with potential traps for the unwary. A recent ACA Compliance Group (ACA) program provided a comprehensive overview of the relevant rules and SEC guidance that govern these advertising practices and discussed multiple potential pitfalls. The program featured Mark Lawler, ACA senior principal consultant, Matthew Shepherd, ACA principal consultant, and Erika Roess, senior principal consultant at ACA Performance Services. This article, the first in a two-part series, discusses regulations governing performance advertising, compliance with GIPS, recordkeeping requirements relating to marketing materials and use of past specific recommendations. The second article will consider the permissibility of advertising backtested performance and partial client lists; portability of track records; use of solicitors to raise capital; marketing to investors in private funds; and compliance with private placement requirements. For additional insight from Roess, see “Expert Panel Provides Roadmap for Hedge Fund Managers Looking to Present Performance in Compliance With GIPS” (Aug. 1, 2013).