Explain when a new or acquiring firm may link to, or show as its own history, the performance record of a prior firm or affiliation
The idea
Portability requires three conditions to hold together. Substantially all the people who made the investment decisions must now work at the new or acquiring firm; the decision-making process must remain substantially intact and independent there; and the new firm must hold records that document and support the historical results. The link must be disclosed. If a condition fails, for example a key portfolio manager stays behind or the process is absorbed into the acquirer's, the old record cannot be presented as the new firm's own, though it may appear as supplemental information. Performance cannot be linked across a break in the track record. A compliant firm that acquires or joins a non-compliant one has one year to bring those assets into compliance.
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