Regulation states that fund managers must not mislead clients. However, subtle nuances around word choice, connotations and links to performance can distort framing. While prescribed scales exist for risk, analysis shows inconsistent application. Gradable adjectives (e.g. strong) can be subjective. Examples like the Beaufort Wind Scale assign words to speeds. Analysis of market data shows the distribution of outcomes. The "Isles Scale" maps asset class returns to pre-defined words for given time periods for the purpose of investment communication. Prescribing universal implementation of this approach would remove a dangerous loophole in the regulation. - Douglas Isles, Platinum Asset Management. Earn 0.50 CE/CPD hrs on Portfolio Construction Forum