On March 19, 2025, the SEC’s Division of Investment Management updated its Marketing Compliance Frequently Asked Questions (FAQs) to address persistent questions about the presentation of extracted performance and whether certain portfolio or investment characteristics are “performance” under Rule 206(4)‑1 – known as the Marketing Rule – under the Investment Advisers Act of 1940. The updated FAQs bring welcome relief to the private funds industry, opening the door for fund managers to more confidently include extracted performance breakdowns and certain performance metrics in their marketing materials, which can, if wielded correctly, help investors make better-informed decisions. This article summarizes the new FAQs and provides thoughtful analysis about potential issues and long-term implications based on interviews with several industry experts. See “SEC Examinations and Enforcement Staff Identify Targeted Misconduct Under the Marketing Rule (Part One of Two)” (Feb. 6, 2025).