Exercise
Answer true or false
- 1. _ Broker-dealers are permitted to use customer testimonials in their advertisements.
- 2. _ Investment adviser representatives can never use references or past recommendations as part of their advertising efforts.
- 3. _ Graphs and charts are prohibited from advertisements for investment advisers and investment adviser representatives.
- 4. _ Third-party links provided on a broker-dealer firm’s website are always subject to FINRA guidelines.
- 5. _ Broker-dealers operating within a bank setting should always offer their services in an area distinct from where regular banking activity takes place.
- 6. _ As long as an agent selling shares of a mutual fund delivers a final prospectus before a given sales date, full disclosure has been provided.
Answers
- 1. True. Broker-dealers may use customer testimonials; investment advisers may only use third-party testimonials in specific instances. .
- 2. False. An investment adviser representative can use references and past recommendations as long as she provides a list of all recommendations she has made for at least the past
